FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (000's OMITTED) December 31, June 30, 2009 2009 (UNAUDITED) Current Assets: ---------- ---------- Cash and cash equivalents $ 1,071 $ 1,226 Marketable securities 30 23 Accounts receivable - net 5,922 5,392 Accounts receivable - related parties - net 119 - Medical receivables - net 224 374 Management fee receivable - net 3,112 3,274 Management fee receivable - related medical practices - net 1,803 2,196 Costs and estimated earnings in excess of billings on uncompleted contracts 1,257 1,476 Inventories 2,839 3,172 Current portion of advances and notes to related medical practices 173 165 Current portion of notes receivable 85 518 Prepaid expenses and other current assets 340 472 ---------- ---------- Total Current Assets 16,975 18,288 ---------- ---------- Property and equipment - net 2,495 2,892 Advances and notes to related medical practices - net - 89 Notes receivable - net 142 1,779 Other intangible assets - net 4,896 4,920 Other assets 392 391 ---------- ---------- Total Assets $ 24,900 $ 28,359 ========== ========== FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED) December 31, June 30, LIABILITIES AND STOCKHOLDERS' DEFICIENCY 2009 2009 (UNAUDITED) Current Liabilities: ---------- ---------- Current portion of long-term debt and capital leases $ 314 $ 277 Current portion of long-term debt - related party 84 80 Accounts payable 3,456 3,519 Other current liabilities 8,558 8,460 Unearned revenue on service contracts 5,910 5,526 Unearned revenue on service contracts - related parties 110 - Customer advances 7,240 9,238 Billings in excess of costs and estimated earnings on uncompleted contracts 3,114 2,026 ---------- ---------- Total Current Liabilities 28,786 29,126 Long-Term Liabilities: Accounts payable 89 184 Due to related medical practices 645 643 Long-term debt and capital leases, less current portion 682 759 Long-term debt less current portion - related party 117 160 Other liabilities 459 428 ---------- ---------- Total Long-Term Liabilities 1,992 2,174 ---------- ---------- Total Liabilities 30,778 31,300 ---------- ---------- FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED, except share data) December 31, June 30, LIABILITIES AND STOCKHOLDERS' DEFICIENCY 2009 2009 (continued) (UNAUDITED) ---------- ---------- STOCKHOLDERS' DEFICIENCY: Class A non-voting preferred stock $.0001 par value; 1,600,000 authorized, 313,451 issued and outstanding at December 31, 2009 and June 30, 2009 - - Preferred stock $.001 par value; 2,000,000 shares authorized, issued and outstanding - none - - Common Stock $.0001 par value; 30,000,000 shares authorized at December 31, 2009 and June 30, 2009, 4,927,918 and 4,917,918 issued at December 31, 2009 and June 30, 2009, respectively; 4,916,275 and 4,906,275 outstanding at December 31, 2009 and June 30, 2009, respectively 1 1 Class B Common Stock $ .0001 par value; 800,000 shares authorized, (10 votes per share), 158 issued and outstanding at December 31, 2009 and June 30, 2009 - - Class C Common Stock $.0001 par value; 2,000,000 shares authorized, (25 votes per share), 382,513 issued and outstanding at December 31, 2009 and June 30, 2009 - - Paid-in capital in excess of par value 172,298 172,280 Accumulated other comprehensive loss (15) (21) Accumulated deficit (177,292) (174,259) Notes receivable from employee stockholders (195) (267) Treasury stock, at cost - 11,643 shares of common stock at December 31, 2009 and June 30, 2009 (675) (675) ---------- ---------- Total Stockholders' Deficiency (5,878) (2,941) ---------- ---------- Total Liabilities and Stockholders' Deficiency $ 24,900 $ 28,359 ========== ========== FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (000's OMITTED, except per share data) FOR THE THREE MONTHS ENDED DECEMBER 31, ---------------------- 2009 2008 REVENUES ---------- ---------- Product sales - net $ 2,961 $ 4,407 Service and repair fees - net 2,629 2,624 Service and repair fees - related parties - net 55 55 Management and other fees - net 1,738 1,735 Management and other fees - related medical practices - net 830 714 License fees and royalties - 1,755 ---------- ---------- Total Revenues - Net 8,213 11,290 ---------- ---------- COSTS AND EXPENSES Costs related to product sales 2,279 2,824 Costs related to service and repair fees 978 1,027 Costs related to service and repair fees - related parties 20 22 Costs related to management and other fees 1,384 1,074 Costs related to management and other fees - related medical practices 745 698 Research and development 777 928 Selling, general and administrative 3,100 3,471 Provision for bad debts 197 545 ---------- ---------- Total Costs and Expenses 9,480 10,589 ---------- ---------- (Loss) Income From Operations (1,267) 701 Interest Expense (90) (40) Interest Expense - Related Party (5) - Investment Income 66 113 Interest Income - Related Party 3 6 Other Income 1 1 ---------- ---------- NET (LOSS) INCOME $ (1,292) $ 781 ========== ========== Basic Net (Loss) Income Per Common Share $ (0.26) $ 0.16 ========== ========== Diluted Net (Loss) Income Per Common Share $ (0.26) $ 0.16 ========== ========== Weighted Average Basic Shares Outstanding 4,916,275 4,904,275 ========== ========== Weighted Average Diluted Shares Outstanding 4,916,275 4,904,275 ========== ========== FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (000's OMITTED, except per share data) FOR THE SIX MONTHS ENDED DECEMBER 31, ---------------------- 2009 2008 REVENUES ---------- ---------- Product sales - net $ 4,524 $ 5,819 Service and repair fees - net 5,386 5,170 Service and repair fees - related parties - net 110 110 Management and other fees - net 3,473 3,782 Management and other fees - related medical practices - net 1,625 1,439 License fees and royalties 585 1,755 ---------- ---------- Total Revenues - Net 15,703 18,075 ---------- ---------- COSTS AND EXPENSES Costs related to product sales 3,936 4,265 Costs related to service and repair fees 1,919 2,038 Costs related to service and repair fees - related parties 39 43 Costs related to management and other fees 2,651 2,277 Costs related to management and other fees - related medical practices 1,505 1,354 Research and development 1,631 1,809 Selling, general and administrative 6,333 6,735 Provision for bad debts 377 700 ---------- ---------- Total Costs and Expenses 18,391 19,221 ---------- ---------- Loss From Operations (2,688) (1,146) Interest Expense (169) (119) Interest Expense - Related Party (19) - Investment Income 153 145 Interest Income - Related Party 6 12 Other Income 34 2 Minority Interest in Income of Partnerships - (11) Gain on Sale of Consolidated Subsidiary - 1,448 Loss on Note Receivable (350) - ---------- ---------- NET (LOSS) INCOME $ (3,033) $ 331 ========== ========== Basic Net (Loss) Income Per Common Share $ (0.62) $ 0.07 ========== ========== Diluted Net (Loss) Income Per Common Share $ (0.62) $ 0.07 ========== ========== Weighted Average Basic Shares Outstanding 4,912,108 4,904,275 ========== ========== Weighted Average Diluted Shares Outstanding 4,912,108 4,904,275 ========== ==========
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 Fax: 631-390-1709 http://www.fonar.com