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<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
1 - DESCRIPTION OF BUSINESS, LIQUIDITY AND CAPITAL RESOURCES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Description
of Business</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
Corporation (the “Company” or “FONAR”) is a Delaware corporation, which was incorporated on July 17, 1978.
FONAR is engaged in the research, development, production and marketing of medical scanning equipment, which uses principles of
Magnetic Resonance Imaging ("MRI") for the detection and diagnosis of human diseases. In addition to deriving revenues
from the direct sale of MRI equipment, revenue is also generated from our installed-base of customers through our service and
upgrade programs.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR,
through its wholly-owned subsidiary Health Management Corporation of America ("HMCA") provides comprehensive management
services to diagnostic imaging facilities. The services provided by the Company include development, administration, leasing of
office space, facilities and medical equipment, provision of supplies, staffing and supervision of non-medical personnel, legal
services, accounting, billing and collection and the development and implementation of practice growth and marketing strategies.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
March 5, 2013, the Company acquired a majority interest in a newly formed limited liability company, Health Diagnostics Management
LLC (HDM), a business managing 12 Stand-Up MRI centers and 2 other scanning centers located in Florida and New York for a total
cost of $40 million. HDM has a perpetual existence. See Note 9.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">During
May 2011, HMCA contributed all of its assets together with its liabilities to a newly formed limited liability company, Imperial
Management Services, LLC (“Imperial”), which has a perpetual existence. As of June 30, 2013, Imperial manages 11 diagnostic
imaging facilities located in states of New York and Florida.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Principles
of Consolidation</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships.
The operating activities of subsidiaries are included in the accompanying consolidated statements from the date of acquisition.
All significant intercompany accounts and transactions have been eliminated in consolidation.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Use
of Estimates</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The most significant estimates
relate to receivable allowances, intangible assets, income taxes and related tax asset valuation allowances, useful lives of property
and equipment, contingencies, revenue recognition and the assessment of litigation. In addition, healthcare industry reforms and
reimbursement practices will continue to impact the Company's operations and the determination of contractual and other allowance
estimates. Actual results could differ from those estimates.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Inventories</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Inventories
consist of purchased parts, components and supplies, as well as work-in-process, and are stated at the lower of cost, determined
on the first-in, first-out method, or market.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Property
and Equipment</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Property
and equipment procured in the normal course of business is stated at cost. Property and equipment purchased in connection with
an acquisition is stated at its estimated fair value, generally based on an appraisal. Property and equipment is being depreciated
for financial accounting purposes using the straight-line method over their estimated useful lives. Leasehold improvements are
being amortized over the shorter of the useful life or the remaining lease term. Upon retirement or other disposition of these
assets, the cost and related accumulated depreciation of these assets are removed from the accounts and the resulting gains or
losses are reflected in the results of operations. Expenditures for maintenance and repairs are charged to operations. Renewals
and betterments are capitalized. Maintenance and repair expenses totaled approximately $598,000 and $371,000 for the years ended
June 30, 2013 and 2012, respectively. The estimated useful lives in years are generally as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic
equipment under capital lease</font></td><td style="width: 10%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 18%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.5</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5–13</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Research, development
and demonstration equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-7</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Machinery and equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2-7</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Furniture and fixtures</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-9</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Leasehold improvements</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2–10</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Building</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">27.5</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Long-Lived
Assets</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company periodically assesses the recoverability of long-lived assets, including property and equipment and intangibles, other
than goodwill, when there are indications of potential impairment, based on estimates of undiscounted future cash flows. The amount
of impairment is calculated by comparing anticipated discounted future cash flows with the carrying value of the related asset.
In performing this analysis, management considers such factors as current results, trends, and future prospects, in addition to
other economic factors.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Other
Intangible Assets</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1)
Capitalized Software Development Costs</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 12pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capitalization
of software development costs begins upon the establishment of technological feasibility. Technological feasibility for the Company’s
computer software is generally based upon achievement of a detail program design free of high risk development issues and the
completion of research and development on the product hardware in which it is to be used. The establishment of technological feasibility
and the ongoing assessment of recoverability of capitalized computer software development costs require considerable judgment
by management with respect to certain external factors, including, but not limited to, technological feasibility, anticipated
future gross revenue, estimated economic life and changes in software and hardware technology. Prior to reaching technological
feasibilty those costs are expensed as incurred and included in research and development.</font><br />
</p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify; margin-bottom: 0pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
of capitalized software development costs commences when the related products become available for general release to customers.
Amortization is provided on a product by product basis. The annual amortization is the greater of the amount computed using (a)
the ratio that current gross revenue for a product bears to the total of current and anticipated future gross revenue for that
product, or (b) the straight-line method over the remaining estimated economic life of the product.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 12pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company periodically performs reviews of the recoverability of such capitalized software development costs. At the time a determination
is made that capitalized amounts are not recoverable, based on the estimated cash flows to be generated from the applicable software,
any remaining capitalized amounts are written off.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 0pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><br />
<font style="font: 10pt Arial, Helvetica, Sans-Serif">2) Patents and Copyrights</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 0pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
is calculated on the straight-line basis over a period ranging from 15 to 17 years.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 12pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3)
Management Agreement</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 12pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
management agreement was being amortized on the straight line basis over the length of the agreement (15 years). For the year
ended June 30, 2013, the Company recorded an impairment of $357,500 as a result of the closing of a scanning center in New York.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 12pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4)
Non-Competition Agreements</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 12pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
non-competition agreements are being amortized on the straight line basis over the length of the agreement (7 years).</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5)
Customer Relationships</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 12pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
is calculated on the straight line basis over 20 years.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font><br />
</p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Goodwill</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Generally
accepted accounting principles in the United States require the Company to perform a goodwill impairment test annually and more
frequently when negative conditions or a triggering event arises. Impairment of goodwill is tested at the reporting unit level
by comparing the reporting unit’s carrying amount, including goodwill to the fair value of the reporting unit. If the carrying
amount of the reporting unit exceeds its fair value, goodwill is considered potentially impaired and a second step is performed
to measure the amount of impairment loss, if any.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Acquired
assets and assumed liabilities</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Pursuant
to ASC No. 805-10-25, if the initial accounting for a business combination is incomplete by the end of the reporting period in
which the combination occurs, but during the allowed measurement period not to exceed one year from the acquisition date, the
company retrospectively adjusts the provisional amounts recognized at the acquisition date by means of adjusting the amount recognized
for goodwill.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Revenue
Recognition</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Revenue
on sales contracts for scanners, included in “product sales” in the accompanying consolidated statements of operations,
is recognized under the percentage-of-completion method in accordance with FASB ASC 605-35, “Revenue Recognition –
Construction-Type and Production-Type Contracts”. The Company manufactures its scanners under specific contracts that provide
for progress payments. Production and installation take approximately three to six months. The percentage of completion is determined
by the ratio of costs incurred to date on completed sub-assemblies to the total estimated cost for each scanner. Contract costs
include purchased parts and components, direct labor and overhead. Revisions in cost estimates and provisions for estimated losses
on uncompleted contracts, if any, are made in the period in which such losses are determined. The asset, "Costs and Estimated
Earnings in Excess of Billings on Uncompleted Contracts", represents revenues recognized in excess of amounts billed. The
liability, "Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts", represents amounts billed
in excess of revenues recognized.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Revenue
on scanner service contracts is recognized on the straight-line method over the related contract period, usually one year.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Revenue
from sales of other items is recognized upon shipment.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Revenue
under management contracts is recognized based upon contractual agreements for management services rendered by the Company primarily
under various long-term agreements with various medical providers (the "PCs"). As of June 30, 2013, the Company has
twenty management agreements of which three are with PC’s owned by Raymond V. Damadian, M.D., President and Chairman of
the Board of FONAR (“the Related medical practices”) and seventeen are with PC’s, which are all located in the
state of New York (“the New York PC’s”), owned by two unrelated radiologists. The contractual fees for services
rendered to the PCs consists of fixed monthly fees per diagnostic imaging facility ranging from approximately $35,000 to $241,000.
All fees are re-negotiable at the anniversary of the agreements and each year thereafter. Revenue under lease contracts is recognized
based upon contractual agreements for the leasing of medical equipment primarily under long term contracts to various unrelated
PC’s. The lease fees for the medical equipment consist of fixed monthly fees ranging from $2,000 to $19,000. All fees are
re-negotiable at the anniversary of the agreements and each year thereafter.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Patient
fee revenue, net of contractual allowance and discounts, consist of net patient fees received from insurance companies, third
party payors (including federal and state agencies under Medicare and Medicaid programs), hospitals and patients themselves based
mainly upon established contractual billing rates, less allowances for contractual adjustments and discounts. Patient fee revenue
is recorded in the period in which services are provided.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Revenue
Recognition</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company’s patient fee revenue, net of contractual allowances and discounts less the provision for bad debts for the years
ended June 30, 2013 and 2012 are summarized in the following table.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Year Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Commercial
Insurance/ Managed Care</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,360,536</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Medicare/Medicaid</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">541,602</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Workers'
Compensation/Personal Injury</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,597,416</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,982,311</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Patient
Fee Revenue, net of contractual allowances and discounts</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,481,865</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Provision
for Bad Debts</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(2,584,669</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Patient Fee for Revenue</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,897,196</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Allowance
for Doubtful Accounts – Patient Fee</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company provides for medical receivables that could become uncollectible by establishing an allowance for doubtful accounts in
order to adjust medical receivables to estimated net realizable value. In evaluating the collectability of medical receivables,
the Company considers a number of factors, including the age of the account, historical collection experiences, payor type, current
economic conditions and other relevant factors. There are various factors that impact collection trends, such as payor mix, changes
in the economy, increase burden on copayments to be made by patients with insurance and business practices related to collection
efforts. These factors continuously change and can have an impact on collection trends and the estimation process.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Research
and Development Costs</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Research
and development costs are charged to expense as incurred. The costs of materials and equipment that are acquired or constructed
for research and development activities, and have alternative future uses (either in research and development, marketing or production),
are classified as property and equipment and depreciated over their estimated useful lives.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Advertising
Costs</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Advertising
costs are expensed as incurred. Advertising expense approximated $835,000 and $715,000 for the years ended June 30, 2013 and 2012,
respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Shipping
Costs</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company’s shipping and handling costs are included in revenue from product sales and the related expense included in costs
related to product sales is $5,838 and $26,425 for the years ended June 30, 2013 and 2012, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Income
Taxes</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Deferred
tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax basis
of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Customer
Advances</u></font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Cash
advances and progress payments received on sales orders are reflected as customer advances until such time as revenue recognition
begins.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Earnings
Per Share</u></font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Basic
earnings per share (“EPS”) is computed based upon the weighted average number of shares of common stock and stock
equivalents outstanding, net of common stock. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class
Method”, the Company used the Two-Class method for calculating basic earnings per share and applied the if converted method
in calculating diluted earnings per share for the years ended June 30, 2013 and June 30, 2012.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diluted
EPS reflects the potential dilution from the exercise or conversion of all dilutive securities into common stock based on the
average market price of common shares outstanding during the period. For both the year ended June 30, 2013 and June 30, 2012,
diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common.</font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">  </font></p>
<p style="font: 8pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2013</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Basic</u></font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
C Common Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
C Common Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Numerator:</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt; width: 44%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
income Available to common stockholders</font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8,678,542</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8,107,367</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 2%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">145,467</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,776,481</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,392,212</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">97,863</font></td>
<td style="width: 0%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Basic
income per common share</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.46</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.37</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.38</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.00</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.93</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.26</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); height: 33">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Diluted</u></font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
C Common Stock</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">127,504</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">127,504</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
Denominator for diluted earnings per share</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,060,822</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,906,199</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diluted
income per common share</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.34</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.38</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.91</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.26</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 8pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 8pt Courier New, Courier, Monospace; margin: 0; text-align: center"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Cash
and Cash Equivalents</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company considers all short-term highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Concentration
of Credit Risk</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Cash:
The Company maintains its cash and cash equivalents with various financial institutions, which exceed federally insured limits
throughout the year. At June 30, 2013, the Company had cash on deposit of approximately $6,030,000 in excess of federally insured
limits of $250,000.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Related
Parties: Net revenues from related parties accounted for approximately 15% and 17% of the consolidated net revenues for the years
ended June 30, 2013 and 2012, respectively. Net management fee receivables from the related medical practices accounted for approximately
9% and 13% of the consolidated accounts receivable for the years ended June 30, 2013 and 2012, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">See
Note 3 regarding the Company’s concentrations in the healthcare industry.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Fair
Value of Financial Instruments</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
financial statements include various estimated fair value information at June 30, 2013 and 2012, as required by ASC topic 820,
"Disclosures about Fair Value of Financial Instruments". Such information, which pertains to the Company's financial
instruments, is based on the requirements set forth in that Statement and does not purport to represent the aggregate net fair
value to the Company.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is
practicable to estimate that value:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Cash
and cash equivalents: The carrying amount approximates fair value because of the short-term maturity of those instruments.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Receivable
and accounts payable: The carrying amounts approximate fair value because of the short maturity of those instruments.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Notes
receivable: The carrying amount approximates fair value because the discounted present value of the cash flow generated by the
parties approximates the carrying value of the amounts due to the Company.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Long-term
debt, notes payable and accounts payable: The carrying amounts of debt and notes payable approximate fair value due to the length
of the maturities, the interest rates being tied to market indices and/or due to the interest rates not being significantly different
from the current market rates available to the Company.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">All
of the Company's financial instruments are held for purposes other than trading.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Recent
Accounting Pronouncements </u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">In
July 2012, the FASB issued ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350) Testing Indefinite-Lived Intangible Assets
for Impairment. This ASU simplifies how entities test indefinite-lived intangible assets for impairment which improves consistency
in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative
factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than
its carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than
its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in
previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning
after September 15, 2012, early adoption is permitted. The adoption of this standard is not expected to have a material impact
on the Company’s consolidated financial position and results of operations.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FASB,
the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June
30, 2013 that will become effective in subsequent periods; however, management does not believe that any of those updates would
have significantly affected our financial accounting measures or disclosures had they been in effect during 2013 or 2012, and
it does not believe that any of those pronouncements will have a significant impact on our consolidated financial statements at
the time they become effective.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Reclassifications</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Certain
prior year amounts have been reclassified to conform to the current year presentation. The reclassifications did not have any
effect on reported net income for any periods presented.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company’s customers are concentrated in the healthcare industry.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Accounts
Receivable</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Credit
risk with respect to the Company’s accounts receivable related to product sales and service and repair fees is limited due
to the customer advances received prior to the commencement of work performed and the billing of amounts to customers as sub-assemblies
are completed. Service and repair fees are billed on a monthly or quarterly basis and the Company does not continue providing
these services if accounts receivable become past due. The Company controls credit risk with respect to accounts receivable from
service and repair fees through its credit evaluation process, credit limits, monitoring procedures and reasonably short collection
terms. The Company performs ongoing credit authorizations before a product sales contract is entered into or service and repair
fees are provided.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Medical
Receivable</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Medical
receivables are due under fee-for-service contracts from third party payors, such as hospitals, government sponsored healthcare
programs, patient’s legal counsel and directly from patients. Substantially all the revenue relates to patients residing
in Florida. The carrying amount of the medical receivable is reduced by an allowance that reflects management’s best estimate
of the amounts that will not be collected. The Company continuously monitors collections from its clients and maintains an allowance
for bad debts based upon the Company’s historical collection experience. The Company determines allowances for contractual
adjustments and uncollectible accounts based on specific agings, specific payor collection issues that have been identified and
based on payor classifications and historical experience at each site.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Management
and Other Fees Receivable</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company’s receivables from the related and non-related professional corporations (“PCs”) substantially consist
of fees outstanding under management agreements. Payment of the outstanding fees is dependent on collection by the PCs of fees
from third party medical reimbursement organizations, principally insurance companies and health management organizations.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Payment
of the management fee receivables from the PC’s may be impaired by the inability of the PC’s to collect in a timely
manner their medical fees from the third party payors, particularly insurance carriers covering automobile no-fault and workers
compensation claims due to longer payment cycles and rigorous informational requirements and certain other disallowed claims.
Approximately 41% and 38%, respectively, of the PCs’ 2013 and 2012 net revenues were derived from no-fault and personal
injury protection claims. The Company considers the aging of its accounts receivable in determining the amount of allowance for
doubtful accounts. The Company generally takes all legally available steps to collect its receivables. Credit losses associated
with the receivables are provided for in the consolidated financial statements and have historically been within management's
expectations.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
revenues from management and other fees charged to the related medical practices accounted for approximately 15% and 17%, of the
consolidated net revenues for the years ended June 30, 2013 and 2012, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Tallahassee
Magnetic Resonance Imaging, PA, Stand Up MRI of Boca Raton, PA and Stand Up MRI & Diagnostic Center, PA (all related medical
practices) entered into a guaranty agreement, pursuant to which they cross guaranteed all management fees which are payable to
the Company, which have arisen under each individual management agreement.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
following table sets forth the number of our facilities for the year end June 30, 2013 and 2012.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
The Year Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt; width: 64%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
Facilities Owned or Managed (at Beginning of Year)</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">10</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Facilities
Added by:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Acquisition</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Internal development</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Managed
Facilities Closed</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
Facilities Owned or Managed (at End of Year)</font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">24</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr></table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">FONAR
CORPORATION AND SUBSIDIARIES</p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS AND CUSTOMER ADVANCES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1)
Information relating to uncompleted contracts as of June 30, 2013 and 2012 is as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Costs
incurred on uncompleted contracts</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,482,384</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,745,307</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Estimated
earnings</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,191,141</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,670,289</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,673,525</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,415,596</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:
Billings to date</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,370,000</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,287,000</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">303,525</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,128,596</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Included
in the accompanying consolidated balance sheets under the following captions:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Costs
and estimated earnings in excess of billings on uncompleted contracts</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">445,742</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,128,596</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:  Billings
in excess of costs and estimated earnings on uncompleted contracts</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">142,217</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">303,525</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,128,596</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2)
Customer advances consist of the following:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
advances</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,227,870</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,168,284</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:
Advances on contracts under construction</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,370,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,287,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,857,870</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,881,284</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.5in"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
5 – INVENTORIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.5in"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Inventories
included in the accompanying consolidated balance sheets consist of:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt; width: 64%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Purchased
parts, components and supplies</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,783,847</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,672,494</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Work-in-process</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">293,241</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">522,455</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,077,088</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,194,949</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr></table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
6 - PROPERTY AND EQUIPMENT</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Property
and equipment, at cost, less accumulated depreciation and amortization, at June 30, 2013 and 2012, is comprised of:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic
equipment under capital leases</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">620,307</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,417,300</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">18,567,787</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,138,898</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Research, development
and demonstration equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,500,902</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,861,199</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Machinery and equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,987,159</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,985,215</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Furniture and fixtures</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,952,449</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,212,149</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Leasehold improvements</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,669,338</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,545,974</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Building</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">939,614</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">939,614</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">37,237,556</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">28,100,349</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:
Accumulated depreciation and amortization</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">19,713,062</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">24,926,902</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">17,524,494</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,173,447</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization of property and equipment for the years ended June 30, 2013 and 2012 was $1,554,458 and $1,677,186, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization of diagnostic equipment under capital leases for the years ended June 30, 2013 and 2012 was $248,123 and $646,620,
respectively. Accumulated depreciation and amortization of diagnostic equipment under capital leases for the years ended June
30, 2013 and 2012 was $525,281 and $1,074,152, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: center; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: center; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
7 - OTHER INTANGIBLE ASSETS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other
intangible assets, net of accumulated amortization, at June 30, 2013 and 2012 are comprised of:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capitalized
software developmentcosts</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,668,959</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,368,960</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Patents and copyrights</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,193,800</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,100,511</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Management agreement</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">513,333</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Non-competition agreements</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,100,000</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Customer
relationships</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,800,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">19,762,759</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">10,982,804</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:
Accumulated amortization</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,858,511</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,147,625</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,904,248</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,835,179</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Information
related to the above intangible assets for the years ended June 30, 2013 and 2012 is as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Balance
– Beginning of Year</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,835,179</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,318,311</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amounts capitalized</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,359,907</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">146,163</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Abandon patents
written off</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(66,619</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(76,231</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Impairment of management
agreement</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(357,500</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(866,719</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(553,064</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Balance
– End of Year</font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,904,248</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,835,179</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
of patents and copyrights for the years ended June 30, 2013 and 2012 amounted to $168,631 and $156,310, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
of capitalized software development costs for the years ended June 30, 2013 and 2012 was $335,350 and $360,087, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
of management agreement for the years ended June 30, 2013 and 2012 amounted to $100,833 and $36,667, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
of non-competition agreements for the years ended June 30, 2013 and 2012 amounted to $195,238 and $0, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
of customer relationships for the years ended June 30, 2013 and 2012 amounted to $66,667 and $0, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">  </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
estimated amortization of other intangible assets for the five years ending June 30, 2018 and thereafter is as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Years Ending June 30,</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Patents
and Copyrights</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capitalized
Software Development Costs</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Non-competition</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Customer
Relationships</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2014</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,406,735</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">185,745</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">445,276</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2015</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,378,035</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">201,879</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">400,442</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2016</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,397,159</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">217,434</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">404,011</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2017</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,418,301</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">232,987</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">409,600</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2018</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,370,948</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">234,900</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">360,334</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Thereafter</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,933,070</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,070,433</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">103,112</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">976,192</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,783,333</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,904,248</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,143,378</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,122,775</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,904,762</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,733,333</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
weighted average amortization period for other intangible assets is 11.2 years and they have no expected residual value.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: center; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 13.5pt; text-align: center; text-indent: -13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
8 - CAPITAL STOCK</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Common
Stock</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Cash
dividends payable on the common stock shall, in all cases, be on a per share basis, one hundred twenty percent (120%) of the cash
dividend payable on shares of Class B common stock and three hundred sixty percent (360%) of the cash dividend payable on a share
of Class C common stock.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Class
B Common Stock</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
B common stock is convertible into shares of common stock on a one-for-one basis. Class B common stock has 10 votes per share.
There were 146 and 158 of such shares outstanding at June 30, 2013 and 2012, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Class
C Common Stock</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
April 3, 1995, the stockholders ratified a proposal creating a new Class C common stock and authorized the exchange offering of
three shares of Class C common stock for each share of the Company's outstanding Class B common stock. The Class C common stock
has 25 votes per share, as compared to 10 votes per share for the Class B common stock and one vote per share for the common stock.
The Class C common stock was offered on a three-for-one basis to the holders of the Class B common stock. Although having greater
voting power, each share of Class C common stock has only one-third of the rights of a share of Class B common stock to dividends
and distributions. Class C common stock is convertible into shares of common stock on a three-for-one basis.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">  </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Class
A Non-Voting Preferred Stock</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
April 3, 1995, the stockholders ratified a proposal consisting of the creation of a new class of Class A non-voting preferred
stock with special dividend rights and the declaration of a stock dividend on the Company's common stock consisting of one share
of Class A non-voting preferred stock for every five shares of common stock. The stock dividend was payable to holders of common
stock on October 20, 1995. Class A non-voting preferred stock issued pursuant to such stock dividend approximates 313,000 shares.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Class A non-voting preferred stock is entitled to a special dividend equal to 3-1/4% of first $10 million, 4-1/2% of next $20
million and 5-1/2% on amounts in excess of $30 million of the amount of any cash awards or settlements received by the Company
in connection with the enforcement of five of the Company's patents in its patent lawsuits, less the revised special dividend
payable on the common stock with respect to one of the Company's patents.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Class A non-voting preferred stock participates on an equal per share basis with the common stock in any dividends declared and
ranks equally with the common stock on distribution rights, liquidation rights and other rights and preferences (other than the
voting rights).</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Stock
Bonus Plans</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
April 23, 2010, the Board approved the 2010 Stock Bonus Plan. The plan entitles the Company to reserve 2,000,000 shares of common
stock. On August 10, 2010, the Company filed Form S-8 to register the 2,000,000 shares. As of June 30, 2013, 1,005,075 shares
of common stock of FONAR were available for future grant under this plan. 67,870 shares were issued during the year ended June
30, 2013.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Options</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company has stock option plans, which provide for the awarding of incentive and non-qualified stock options to employees, directors
and consultants who may contribute to the success of the Company. The options granted vest either immediately or ratably over
a period of time from the date of grant, typically three or four years, at a price determined by the Board of Directors or a committee
of the Board of Directors, generally the fair value of the Company's common stock at the date of grant. The options must be exercised
within ten years from the date of grant.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR’s
2002 Incentive Stock Option Plan (the “FONAR 2002 Plan”), adopted on July 1, 2002, is intended to qualify as an incentive
stock option plan under Section 422A of the Internal Revenue Code of 1954, as amended. The FONAR 2002 Plan permits the issuance
of stock options covering an aggregate of 100,000 shares of common stock of FONAR. The options have an exercise price equal to
the fair market value of the underlying stock on the date the option is granted, are nontransferable, are exercisable for a period
not exceeding ten years and expire upon the voluntary termination of employment. The FONAR 2002 Plan terminated on June 30, 2012.
During the year ended June 30, 2013, 7,412 options were expired, therefore 6,610 options remain outstanding.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">  </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR’s
2005 Incentive Stock Option Plan (the “FONAR 2005 Plan”), adopted on February 16, 2005,is intended to qualify as an
incentive stock option plan under Section 422A of the Internal Revenue Code of 1954, as amended. The FONAR 2005 Plan permits the
issuance of stock options covering an aggregate of 80,000 shares of common stock of FONAR. The options have an exercise price
equal to the fair value of the underlying stock on the date the option is granted, are non-transferable, are exercisable for a
period not exceeding ten years, and expire upon the voluntary termination of employment. The FONAR 2005 Plan will terminate on
February 14, 2015. As of June 30, 2013, 80,000 shares of common stock of FONAR were available for future grant under this Plan.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Stock
option activity and weighted average exercise prices under these plans and grants for the years ended June 30, 2013 and 2012 were
as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Number
of Options</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Exercise Price</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Aggregate
Intrinsic Value</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt; width: 55%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Outstanding,
June 30, 2011</font></td><td style="width: 4%; font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 9%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">22,537</font></td><td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 9%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">30.27</font></td><td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 9%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Granted</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Exercised</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Forfeited
/ Expired</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(8,515</font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">34.41</font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Outstanding,
June 30, 2012</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,022</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">27.76</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Granted</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Exercised</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Forfeited
/ Expired</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(7,412</font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">26.65</font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Outstanding,
June 30, 2013</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,610</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">29</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Exercisable
at:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-indent: 8.85pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2012</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,022</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">27.76</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Courier New, Courier, Monospace; color: black; text-indent: 8.85pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2013</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,610</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">29.00</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr></table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
9 – CONTROLLING AND NONCONTROLLING INTERESTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
February 13, 2013 the Company entered into an agreement with outside investors to acquire a 50.5% controlling interest in a newly
formed limited liability company, Health Diagnostics Management LLC (HDM). According to the February 13, 2013 LLC operating agreement
of HDM there are two classes of members; Class A members and one Class B member. The Class A members have an ownership interest
of 49.5% of HDM. The Class B member (HMCA) has an ownership of 50.5% of HDM. On all matters on which members may vote every member
is entitled to cast the percentage of votes equal to their percentage of ownership interest. Profits and losses an all items of
income, gain or loss, deductions or other allocations of the Company will be allocated among the members in the same proportions
as their membership interests in the Company bear to all the Class A and Class B membership interests of the Company in the aggregate
outstanding. All of the depreciation and amortization of the assets of the Company will be allocated solely to the Class A members,
unless and until their interests have been redeemed by the Company in full pursuant to the provisions of the operating agreement.
During March 2013 the Company contributed $20,200,000 to HDM and the group of outside investors contributed $19,800,000 for its
non-controlling membership interest.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">To
fund its capital contribution the Company borrowed a total of $14,000,000 from a bank in the form of a term loan aggregating $11,000,000
and a revolving credit loan aggregating $3,000,000. The term loan is payable in 60 consecutive monthly installments, commencing
September 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The revolving credit loan is due March
5, 2016. The Company can prepay the loan in whole or in part in multiples of $100,000 at any time without penalty. The revolving
credit note bears interest at a rate of 4% per annum and is payable monthly. All borrowings under the loan agreements are collateralized
by substantially all of the Company’s assets. The loan agreements also contain certain financial covenants that must be
met on a periodic basis.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
March 5, 2013 HDM purchased from Health Diagnostics, LLC (“HD”) and certain of its subsidiaries, a business managing
twelve (12) Stand-Up® MRI Centers and two (2) other scanning centers located in the States of New York and Florida for a total
purchase price (including consideration of $1.5 million to outside investors) aggregating $35.9 million. Concurrently with the
acquisition, HDM entered into several consulting and non-competition agreements for a consideration of $4.1 million. The acquisition
was accounted for using the purchase method in accordance with ASC 805, “Business Combinations”. The accompanying
consolidated financial statements include the operations of HDM from the date of acquisition. The Company recognizes and measures
goodwill as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified
net assets acquired.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">  </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
following table summarizes the estimated fair values of the assets and liabilities assumed at the acquisition date:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Management
fee receivable</font></td><td style="width: 10%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 18%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,667,259</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Medical
receivables</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,389,953</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Prepaid
expenses and other current assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">10,262</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Property
and equipment</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,912,650</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Intangible
assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Goodwill</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,767,098</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other
assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">332,949</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other
current liabilities</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(6,323</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Long
term debt</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(273,848</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
assets acquired</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">40,000,000</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
purchase price was allocated to the tangible and intangible assets and liabilities assumed based on estimates of their respective
fair values at the date of acquisition with the remaining unallocated purchase price recorded as goodwill. Management is responsible
for the valuation of net assets acquired and considered a number of factors, including valuations and appraisals, when estimating
the fair values and estimated useful lives of acquired assets and liabilities. The intangible assets, excluding goodwill, are
being amortized on a straight-line basis over their weighted average lives as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font-size: 11pt; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Fair
Value</font></td><td style="font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Non
compete</font></td><td style="width: 8%; font-size: 11pt; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,100,000</font></td><td style="width: 1%; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">7
years</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Customer
relationships</font></td><td style="font-size: 11pt; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,800,000</font></td><td style="font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">20
years</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Developed
software</font></td><td style="font-size: 11pt; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,300,000</font></td><td style="padding-bottom: 1pt; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">5
years</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
intangible assets</font></td><td style="font-size: 11pt; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,200,000</font></td><td style="padding-bottom: 2.5pt; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin: 0 0 10pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin: 0 0 10pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
following unaudited pro forma results of operations for the twelve months ended June 30, 2013 and 2012 assumes that the above
acquisitions were made at the beginning of the year prior to acquisition. The unaudited pro forma information does not purport
to be indicative of the results that would have been obtained if the acquisitions had actually occurred at the beginning of the
year prior to acquisition, nor of the results that may be reported in the future.</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Year
ended June 30</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
Revenues - Net</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">69,723,542</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">68,725,401</font></td><td style="width: 1%; color: black; text-align: left"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Income - Controlling Interests</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">17,442,337</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(19,292,852</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Common Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">16,294,377</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(19,292,852</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Class A Non-Voting   Preferred Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">855,597</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Class C Common Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">292,363</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Basis
Net Income Per Common Share Available to Common Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.75</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(3.34</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diluted
Net Income Per Common Share Available to Common Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.69</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(3.34</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Basic
and Diluted Income Per Share - Common C</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.76</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> $</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Basic Shares Outstanding</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Diluted Shares Outstanding</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,060,822</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,909,199</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Basic and Diluted Shares   Outstanding - Class C Common</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amount
of each class of members’ equity as of June 30, 2013</font></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Class
A
Members</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Class
B
Member</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Opening
Members’ Equity</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt; width: 56%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Share of Net
Income</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 16%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">543,225</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 16%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,397,080</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Contributions</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">19,800,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">20,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Distributions</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(816,750</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(833,250</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Ending Members’
Equity at June 30, 2013</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">19,526,475</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">20,763,830</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
May 2, 2011, the Company completed a private placement of equity and succeeded in raising $6,000,000. The offering consisted
of Preferred Class A membership interests in a newly formed limited liability company, Imperial Management Services, LLC
(“Imperial”). The Class B membership interests in Imperial, all of which were retained by the Company’s
subsidiary, HMCA, initially held a 75% equity interest in Imperial. The Class A membership interests are entitled to receive
a dividend of 18% per annum of their cash capital contribution. HMCA contributed all of its assets, together with its
liabilities, to Imperial as HMCA’s capital contribution. The Imperial operating agreement provides for the Class A
members to receive priority distributions until their original capital contributions are returned. Dividends are payable
quarterly beginning August 1, 2011. On May 1, 2013 and on May 1, 2012, the Company returned a portion of the Class A Members
capital contribution in the amount of $1,424,900 and $1,200,000, respectively. As of June 30, 2013, the Company’s
subsidiary, HMCA, now owns an 86% interest in Imperial Management Services.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amount
of each class of members’ equity as of June 30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2013</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
A
Members</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
B
Member</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
A
Members</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
B
Member</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Opening
Members’ Equity</font></td><td style="width: 3%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,918,365</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 3%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,824,945</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 3%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,069,642</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 3%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">208,925</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Share of Net Income</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">959,254</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,947,836</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,128,723</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,616,020</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Contributions</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Distributions</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(853,200</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,080,000</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Redemption</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,424,900</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,200,000</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Ending Members’ Equity at June
30,</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,599,519</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,772,781</font></td><td style="text-align: left"></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,918,365</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,824,945</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
May 1, 2010, the Company purchased a 15.2% interest from an unrelated party of an entity that provides management services to
a diagnostic center in the New York Metropolitan area. On January 1, 2011, the Company purchased an additional 34.8% interest
by the issuance of a promissory note of $400,000. Commencing January 1, 2011, the Company consolidates the activity of this entity.
On June 1, 2013, the Company purchased from the noncontrolling members their remaining 50% interest for $700,000.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company also has a 50% controlling interest in an entity which the Company consolidates, that provides management services to
a diagnostic center in the New York Metropolitan area. The center began operations during January 2012. The noncontrolling
interest as of June 30, 2013 and 2012 aggregated $559,221 and $561,167, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Long-term
debt, notes payable and capital leases consist of the following:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid">June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; color: black; text-align: justify; padding-left: 5.4pt">Notes payable of $580,000 requiring aggregate monthly payments of $20,106, including interest at a rate of 15% per annum through June 2013.</td><td style="width: 4%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 12%; color: black; text-align: right">—  </td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 4%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 12%; color: black; text-align: right">214,355</td><td style="width: 1%; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $720,841 as of June 30, 2013.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">461,648</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">481,615</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable requiring monthly payments of $12,150, including interest at a rate of 5% per annum through January 2014, seven monthly payments of $31,000 commencing February 2014 and a final payment of $5,091 in September 2014.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">271,340</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">423,280</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable from the Fair Haven acquisition requires three monthly payments of $15,000, twelve monthly payments of $20,000 and six monthly payments of $25,000, including interest at a rate of 8.58% per annum through November 2011 then 6 payments of $25,000. The loan is collateralized by equipment which, as of June 30, 2013, has been fully depreciated.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">42,500</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable from the Fair Haven acquisition requires monthly payments of $21,000, including interest at a rate of 4.5% per annum through February 2011 and a final payment of $533,783 in March 2011. The loan is collateralized by equipment which, as of June 30, 2013, has been fully depreciated.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">187,707</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable from the Fair Haven acquisition requires monthly payments of $18,850, including interest at a rate of 11.2% per annum through January 2014. The loan is collateralized by equipment with a net book value of $95,026 as of June 30, 2013.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">127,173</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">326,890</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable requiring monthly principal installments of $4,100 and interest computed on the unpaid principal amount at a rate of 5% per annum through April 2017. The note is secured by certain assets of the Company.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">188,600</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">237,800</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable of $400,000 entered into for the purchase of 34.2% interest in a management company requiring payments of $100,000 on January 2, 2012 and $300,000 on January 2, 2013, including interest at a rate of 10% per annum through January 2013. The lender had a security interest in Imperial’s members interest until the note was paid in full.</td><td style="color: black"> </td>
<td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">300,000</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">The revolving credit note is due by March 5, 2016. The Company can prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2,400,000</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">The term loan is payable with interest only for 6 consecutive months commencing at the inception of the loan followed by 60 consecutive monthly installments, commencing October 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">11,000,000</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable requiring 12 consecutive interest only payments commencing at the inception of the loan followed by 48 consecutive monthly payments, commencing May 1, 2014. The note bears interest at a rate of 4.75% per annum and is payable monthly.  The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">689,646</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Other (including capital leases for property and equipment).</td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">634,367</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">416,750</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">15,772,774</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2,630,897</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Current portion</td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">2,885,769</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">1,853,623</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="color: black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right">12,887,005</td><td style="padding-bottom: 2.5pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right">777,274</td><td style="padding-bottom: 2.5pt; color: black; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
maturities of long-term debt over the next five years and thereafter are as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: middle; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Years
Ending
June
30, </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 30%; color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2014</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 1%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 17%; color: black; text-align: right; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,885,769</font></td><td style="width: 25%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2015</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,488,426</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2016</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,882,554</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2017</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,440,100</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2018</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,372,503</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Thereafter</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">703,422</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">15,772,774</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
11 - INCOME TAXES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Effective
January 1, 2007, the Company adopted the provisions of ASC topic 740 (formerly FASB Interpretation No. 48/FASB Statement No. 109,
“Accounting for Uncertainty in Income Taxes”). ASC topic 740 prescribes a recognition threshold and a measurement
attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a corporate
tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination
by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized
and measured pursuant to the interpretation are referred to as “unrecognized benefits”. A liability is recognized
(or amount of net operating loss carryforward or amount of tax refundable is reduced) for an unrecognized tax benefit because
it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized
as a result of applying the provisions of ASC topic 740.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">In
accordance with ASC topic 740, interest costs related to unrecognized tax benefits are required to be calculated (if applicable)
and would be classified as “Interest expense, net”. Penalties if incurred would be recognized as a component of “Selling,
general and administrative” expenses.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company files corporate income tax returns in the United States (federal) and in various state and local jurisdictions. In most
instances, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years prior
to 2008.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company netted a deferred tax asset of $2,935,750 and a deferred tax liability of $461,858 as of June 30, 2013, primarily relating
to net operating loss carryforwards of approximately $142,788,000 available to offset future taxable income through 2030. The
net operating losses begin to expire in 2019 for federal tax purposes and in 2013 for state income tax purposes.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in
which those temporary differences become deductible. The Company considers projected future taxable income and tax planning
strategies in making this assessment. At present, the Company does have a sufficient history of income and anticipates
profitability in the coming years and has concluded that it is more-likely-than-not that the Company will be able to realize
a portion of its tax benefits in the near future and therefore a valuation allowance was established for the partial value of the
deferred tax asset.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">A
valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of any portion or all
of the valuation. Should the Company continue to remain profitable in future periods with supportable trends, the valuation allowance
will be reversed accordingly.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Components
of the current benefit (provision) for income taxes are as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Current:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-indent: 8.1pt; padding-left: 5.4pt">Federal</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(125,000</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(112,000</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: 8.1pt; padding-left: 5.4pt">State</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(71,001</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(29,125</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(196,001</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(141,125</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Deferred:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 8.1pt; padding-left: 5.4pt">Federal</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,336,454</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: 8.1pt; padding-left: 5.4pt">State</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">137,438</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,473,892</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Benefit (Provision) for income taxes</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,277,891</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(141,125</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">A
reconciliation of the federal statutory income tax rate to the Company's effective tax rate as reported is as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Years
Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; color: black; text-align: left; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Taxes
at federal statutory rate</font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">34.0</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(34.0</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">State
and local income taxes (benefit), net of federal benefit</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6.0</font></td><td style="color: black; text-align: left"></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(6.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Permanent
differences</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.6</font></td><td style="color: black; text-align: left"></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.2</font></td><td style="color: black; text-align: left"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(Decrease)
increase in the valuation allowance and true ups</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(76.2</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">40.8</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Effective
income tax rate</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(35.6</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)%</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.0</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30, 2013, the Company has net operating loss (“NOL”) carryforwards of approximately $142,788,000 that will
be available to offset future taxable income. The utilization of certain of the NOLs is limited by separate return limitation
year rules pursuant to Section 1502 of the Internal Revenue Code.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company has, for federal income tax purposes, research and development tax credit carryforwards aggregating $4,298,000, which
are accounted for under the flow-through method. The Company also has $482,000 in alternative minimum tax credits.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">In
addition, for New York State income tax purposes, the Company has tax credit carryforwards, aggregating approximately $1,139,000,
which are accounted for under the flow-through method. The tax credit carryforwards expire during the years ending June 30, 2013
to June 30, 2028.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">  </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Significant
components of the Company's deferred tax assets and liabilities at June 30, 2013 and 2012 are as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Deferred
tax assets:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Allowance
for doubtful accounts</font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,139,291</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,656,468</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Non-deductible
accruals</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">264,062</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">221,897</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
operating carryforwards</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">58,052,831</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">61,772,391</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Tax
credits</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,873,204</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,769,943</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Property
and equipment and depreciation</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,070,291</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,990,284</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Inventory</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">84,136</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">71,483,815</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">74,410,983</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Valuation
allowance</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(68,548,065</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(73,754,414</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
deferred tax assets</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,935,750</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">656,569</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Deferred
tax liabilities: Inventory</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(51,109</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capitalized
software development costs</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(461,858</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(605,460</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
deferred tax liabilities</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(461,858</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(656,566</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
deferred tax asset</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,473,892</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
valuation allowance for deferred tax assets decreased by approximately $5,206,000 during the year ended June 30, 2013 and decreased
by approximately $2,714,000 during the year ended June 30, 2012.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin-top: 0; text-align: center; margin-bottom: 0pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
12 - OTHER CURRENT LIABILITIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Included
in other current liabilities are the following:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Accrued
salaries, commissions and payroll taxes</font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">710,897</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">569,966</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Accrued
interest</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">117,480</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,712</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Litigation
accruals</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">809,349</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">493,349</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Sales
tax payable</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,858,652</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,764,297</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Legal
and other professional fees</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">569,049</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">577,435</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Accounting
fees</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">305,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">345,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Insurance
premiums</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">13,443</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">12,634</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Interest
and penalty – sales tax</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,321,858</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,115,539</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Penalty
– 401k plan</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">250,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">250,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Rent</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">147,665</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">207,823</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">390,968</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">166,486</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8,494,361</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,693,241</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin-top: 0; text-align: center; margin-bottom: 0pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin-top: 0; text-align: center; margin-bottom: 0pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
13 - COMMITMENTS AND CONTINGENCIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Leases</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company rents its operating facilities and certain equipment, pursuant to operating lease agreements expiring at various dates
through December 2022. The leases for certain facilities contain escalation clauses relating to increases in real property taxes
as well as certain maintenance costs.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Future
minimum operating lease commitments consisted of the following at June 30, 2013:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right; vertical-align: bottom; border-bottom: Black 1pt solid">Year
Ending June 30, </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left; border-bottom: Black 1pt solid"> </td><td style="color: black; text-align: right; border-bottom: Black 1pt solid">Facilities
And Equipment (Operating Lease)</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 22%; color: black; text-align: left"> </td><td style="width: 22%; color: black; text-align: right">2014</td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 10%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 20%; color: black; text-align: right">4,211,719</td><td style="width: 24%; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2015</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">3,586,189</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2016</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2,874,483</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2017</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">1,208,342</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2018</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">835,680</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Thereafter</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">1,245,804</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Total
minimum obligations</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right">13,962,217</td><td style="padding-bottom: 2.5pt; color: black; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Rent
expense for operating leases approximated $4,035,000, including a payment of approximately $690,000 to terminate a lease early
and $2,253,000 for the years ended June 30, 2013 and 2012, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Employee
Benefit Plans</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company has a non-contributory 401(k) Plan (the “401(k) Plan”). The 401(k) Plan covers all non-union employees who
are at least 21 years of age with no minimum service requirements. There were no employer contributions to the Plan for the years
ended June 30, 2013 and 2012. (see Other Matters below)</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
stockholders of the Company approved the 2000 Employee Stock Purchase Plan (“ESPP”) at the Company’s annual
stockholders’ meeting in April 2000. The ESPP provides for eligible employees to acquire common stock of the Company at
a discount, not to exceed 15%. This plan has not been put into effect as of June 30, 2013.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Stipulation
Agreements</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company has entered into stipulation agreements with a number of its creditors that in the aggregate total $795,766, which is
included in other current liabilities and other liabilities on the Company’s balance sheet as of June 30, 2013. The monthly
payments total $27,152.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
amounts to be paid over the next five years are as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right; border-bottom: Black 1pt solid"><font style="font-family: Arial, Helvetica, Sans-Serif">Year
Ending June 30,</font></td><td style="color: black; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 22%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 24%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2014</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 10%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 20%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">419,766</font></td><td style="width: 22%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2015</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">96,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2016</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">96,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2017</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">96,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2018</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">88,000</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> $</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">795,766</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Litigation</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company is subject to legal proceedings and claims arising from the ordinary course of its business, including personal injury,
customer contract and employment claims. In the opinion of management, the aggregate liability, if any, with respect to such actions,
will not have a material adverse effect on the consolidated financial position or results of operations of the Company.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
or about June 30, 2010, one of Fonar’s customers, Golden Triangle Company, commenced an action against Fonar and certain
individual defendants employed or formerly employed by Fonar, in the United States District Court for the Eastern District of
New York based on the alleged wrongful failure of Fonar to deliver a scanner in Kuwait. The claim alleged various causes of action
including breach of contract, fraud, conspiracy to defraud and conversion. <u>Golden Triangle Company v. Fonar Corporation et
al</u>, CV10-2933. The Plaintiff contracted with Fonar to purchase a scanner, and paid $1,455,500 in advance. The scanner was
never delivered, but Plaintiff never designed a site for delivery either. Alleging other damages, fraud and deceptive trade practices,
Plaintiff sought up to $5,000,000. Fonar made a motion to dismiss the complaint, the outcome of which left Plaintiff with only
a cause of action for breach of contract. The claims against the individual officers and employees of Fonar were dismissed. Fonar
filed its answer, together with a counterclaim alleging that the Plaintiff, by attempting to overcharge the end-customer, had
damaged Fonar’s reputation and ability to sell in Kuwait. The case was settled in June 2013 for $480,000 in cash and 30,000
shares of Fonar’s common stock payable in installments. The Company recorded a gain of $755,500 on the statements of income
for the year ended June 30, 2013.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">  </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Jack
Shapiro v. Fonar Corporation,</u> Supreme Court of the State of New York, Nassau County, was commenced by plaintiff in July, 2009
to recover $500,000 based on Fonar’s failure to refund a deposit on an MRI scanner and termination of plaintiff’s
sales representative agreement. Plaintiff alleged that the deposit on the machine was in part consideration for the sales representative
agreement. Fonar’s view was that the sales agreement and sales representative agreement were separate and (1) Fonar was
entitled to keep the deposit on the sale when plaintiff failed to proceed with the transaction and (2) properly terminated the
sales representative agreement in accordance with its terms. The case has been settled for $323,000 payable in installments, subject
to the plaintiff obtaining a sale for Fonar and the payment of installments of the purchase price by the customer.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Matt
Malek Madison v. Fonar Corporation,</u> United States District Court, Northern District of California, was commenced by plaintiff
on August 27, 2007 to recover a down payment for a scanner in the amount of $300,000, with interest. The plaintiff sought costs
of suit and attorney’s fees as well. Fonar answered the complaint and sued the plaintiff for breach of contract in the amount
of $450,000. Although down payments are usually expressly non-refundable in Fonar’s quotations and agreements, in this case,
the quotation contemplated the sale of four scanners, and provided that the deposit would be refundable with interest, if the
customer were unable to find suitable locations in the San Francisco Bay area. The issue was whether the customer made a good
faith effort to find locations; Fonar’s position was that the customer did not. The case went to trial before a judge; the
parties submitted post-trial briefs, and judgment was awarded to the plaintiff. Fonar appealed the trial court’s decision,
but on January 31, 2012, the U.S. Court of Appeals for the 9<sup>th</sup> Circuit affirmed the lower court’s decision awarding
the plaintiff the $300,000 deposit with prejudgment interest from July 1, 2006. Fonar sought to have the Court of Appeals reconsider
the decision en banc, (by all or a larger number of the judges on the Circuit Court of Appeals), but this was not granted. Although
the case has been concluded, the plaintiff has not taken any steps to collect the judgment.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Bonutti
Research v. Fonar Corporation, Health Management Corporation of America, Health Diagnostics, LLC et al, was commenced on December
2, 2011. Bonutti Research filed a patent infringement action in the U.S. District Court for the Eastern District Court of New
York, alleging that Fonar’s Upright® MRI scanners infringe plaintiff’s patent which relates to the moving of a
patient into the scanner. Fonar believes plaintiff’s claims are without merit and further, that the patent is invalid. The
parties are engaged in jurisdictional discovery to determine whether the plaintiff owned the patent claimed to have been infringed
at the time of the commencement of the lawsuit. Discovery on the merits has been stayed pending the outcome of the jurisdictional
discovery. The parties, are engaged in serious settlement negotiations. No specified amount of damages was specified in the complaint.
The patent has expired and as a result, only past damages are at issue.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Bolt
MRI Technologies v. Fonar Corporation, Health Management Corporation of America & Health Diagnostics, LLC</u>, was commenced
on July 22, 2013, when Bolt MRI Technologies filed an action against Fonar Corporation, Health Management Corporation of America
and Health Diagnostics, LLC alleging infringement of the same patent which is the subject of the Bonutti case. Bolt alleges that
the patent was assigned to Bolt on or about June 8, 2012. The parties have been negotiating to settle the case in conjunction
with the settlement of the <u>Bonutti</u> case.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Other
Matters</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company is also delinquent in filing sales tax returns for certain states, for which the Company has transacted business. The
Company has recorded tax obligations of $2,648,000 plus interest and penalties of approximately $2,322,000. The Company is in
the process of determining its regulatory requirements in order to become compliant.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company has determined they may not be in compliance with the Department of Labor and Internal Revenue Service regulations concerning
the requirements to file Form 5500 to report activity of its 401K Employee Benefit Plan. The filings do not require the Company
to pay tax, however they may be subject to penalty for non-compliance. The Company has recorded provisions for any potential penalties
totaling $250,000. The amount was the Company’s best estimate of potential penalties. Management is unable to determine
the outcome of this uncertainty. The Company has engaged outside counsel to handle such matters to determine the necessary requirements
to ensure compliance. On August 31, 2011, the Company submitted with the Internal Revenue Service a request for a compliance statement
and a determination letter for our 401K plan. On December 9, 2011, the Internal Revenue Service issued a favorable determination
letter on our 401K plan. The Company is still working with outside counsel to complete and file forms with the US Department of
Labor.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
14 - OTHER INCOME</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other
income consists of:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Years Ended June 30,</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 10%"> </td>
<td style="width: 47%; color: black; text-align: left; padding-left: 5.4pt; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Loss
from investment</font></td><td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(48,777</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="width: 6%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 10%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 5.4pt; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Litigation
settlement</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">716,250</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">56,194</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 5.4pt; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Gain
on sale of equipment</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">557,473</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Impairment
of management agreement</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(357,500</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other
expense</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(141,958</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(11,138</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">725,488</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">45,056</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
15 - SUPPLEMENTAL CASH FLOW INFORMATION</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">During
the years ended June 30, 2013 and 2012, the Company paid $389,907 and $168,062 for interest, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">During
the years ended June 30, 2013 and 2012, the Company paid $277,000 and $116,125 for income taxes, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Purchase
consideration:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Assets
acquired:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 13%"> </td>
<td style="width: 53%; color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Management
fee receivable</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 16%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,667,259</font></td><td style="width: 13%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Medical
receivable</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,389,953</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Prepaid
expenses and other current assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">10,262</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Property
and equipment</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,912,650</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Intangible
assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Goodwill</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,767,098</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Other
assets</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">332,949</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: Black; font: normal 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">                    Total
assets acquired</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">40,280,171</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Less
liabilities assumed:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Other
current liabilities</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,323</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Long
term debt</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">273,848</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: Black; font: normal 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">                    Total
liabilities assumed</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">280,171</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr></table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify">FONAR
CORPORATION AND SUBSIDIARIES</p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
16 – DUE TO RELATED MEDICAL PRACTICES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">In
June 2009, an entity owned by the Company’s Chairman of the Board, Tallahassee Scanning Services PA, sold its Upright MRI
scanning system to the Company for $550,000 in exchange for 35 monthly payments of $18,769 to be made over a three year period,
commencing October 18, 2009 including interest at a rate of 10.41% per annum. The Company used this scanning system to fulfill
a sales order with an unrelated customer. The unpaid balance of as of June 30, 2013 and 2012 was $134,880.</font></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin-top: 0; text-align: center; margin-bottom: 0pt"> </p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin-top: 0; text-align: center; margin-bottom: 0pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
17 - SEGMENT AND RELATED INFORMATION</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company provides segment data in accordance with the provisions of ASC topic 280, “Disclosures about Segments of an Enterprise
and Related Information”.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company operates in two industry segments - manufacturing and the servicing of medical equipment and management of diagnostic
imaging centers.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
accounting policies of the segments are the same as those described in the summary of significant accounting policies. All intersegment
sales are market-based. The Company evaluates performance based on income or loss from operations.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Summarized
financial information concerning the Company’s reportable segments is shown in the following table:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Manufacturing
and Servicing of Medical Equipment</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Management
of Diagnostic Imaging Centers</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Totals</font></td></tr>
<tr style="vertical-align: bottom">
<td style="color: black; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Fiscal 2013:</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
revenues from external customers</font></td><td style="width: 5%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,891,075</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">34,250,739</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">49,141,814</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Intersegment
net revenues</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Income
from operations</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">139,390</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,396,357</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,535,747</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">541,551</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,879,626</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,421,177</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Compensatory
element of stock  issuances</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">415,021</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">415,021</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
identifiable assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">15,071,225</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">58,079,425</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">73,150,650</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capital
expenditures</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">237,636</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">25,170,303</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">25,407,939</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Fiscal
2012:</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
revenues from external  customers</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">18,707,006</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">20,737,413</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">39,444,419</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Intersegment
net revenues</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">810,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">810,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Income
from operations</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,666,574</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,539,977</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,206,551</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">697,100</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,533,150</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,230,250</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Compensatory
element of stock  issuances</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">155,068</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">25,350</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">180,418</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
identifiable assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">15,144,291</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">18,471,177</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">33,615,468</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capital
expenditures</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">404,530</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">822,842</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,227,372</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">  </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Export
Product Sales</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company’s areas of operations are principally in the United States. The Company had export sales of medical equipment amounting
to 3.8% and 17.0% of product sales revenues to third parties for the years ended June 30, 2013 and 2012, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
foreign product sales, as a percentage of product sales to unrelated parties, were made to customers in the following countries:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Years Ended June 30,</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 19%; color: black; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Holland</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.0</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.1</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="width: 25%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">England</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3.6</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">16.9</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Germany</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.1</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Libya</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.1</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3.80</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">17.0</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Foreign
Service and Repair Fees</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company’s areas of service and repair are principally in the United States. The Company had foreign revenues of service
and repair of medical equipment amounting to 8.2% and 9.9% of consolidated net service and repair fees for the years ended June
30, 2013 and 2012, respectively. The foreign service and repair fees, as a percentage of total service and repair fees, were provided
principally to the following countries:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Years Ended June 30,</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%"> </td>
<td style="width: 19%; color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Spain</font></td><td style="width: 1%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.9</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.8</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="width: 25%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Puerto
Rico</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.9</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Switzerland</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.1</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Germany</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.3</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">England</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.8</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Holland</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.2</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.6</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Scotland</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.7</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Canada</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.8</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Australia</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.4</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Libya</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.2</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Greece</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.4</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8.2</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9.9</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company does not have any material assets outside of the United States.</font></p>
<p style="font: 10pt/115% Courier New, Courier, Monospace; margin-top: 0; text-align: center; margin-bottom: 0pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
18 – ALLOWANCE FOR DOUBTFUL ACCOUNTS</font></p>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
following represents a summary of allowance for doubtful accounts for the years ended June 30, 2013 and 2012, respectively:</font></p>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="color: black; border-bottom: Black 1pt solid">Description</td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">Additions</td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">Deductions</td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 43%; color: black; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Receivables from equipment
sales and service contracts</td><td style="width: 2%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">1,852,987</td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left"> </td><td style="width: 3%; color: black; text-align: right">(1</td><td style="width: 1%; color: black; text-align: left">)</td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">(92,454</td><td style="width: 1%; color: black; text-align: left">)</td><td style="width: 2%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">1,503,171</td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">257,362</td><td style="width: 1%; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Management fee receivable</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">7,458,345</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">(1</td><td style="color: black; text-align: left">)</td>
<td style="font-size: 9pt; text-align: left"> </td><td style="font-size: 9pt; text-align: right">1,636,975</td><td style="font-size: 9pt; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">9,095,320</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Management fee receivable from related
medical practices</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">403,047</td><td style="color: black; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">403,047</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Medical receivables</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">(1</td><td style="color: black; text-align: left">)</td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2,584,669</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2,584,669</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Advance and notes to related  parties</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">239,791</td><td style="color: black; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">37,412</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">202,379</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Notes receivable</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">65,000</td><td style="color: black; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">65,000</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td></tr>
</table>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"> </p>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="color: black; border-bottom: Black 1pt solid">Description</td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2011</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">Additions</td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">Deductions</td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 43%; color: black; text-align: left; text-indent: -9pt; padding-left: 9pt">Receivables from equipment sales
and service contracts</td><td style="width: 2%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">1,777,794</td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left"> </td><td style="width: 3%; color: black; text-align: right">(1</td><td style="width: 1%; color: black; text-align: left">)</td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">100,442</td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">25,249</td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 2%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 9%; color: black; text-align: right">1,852,987</td><td style="width: 1%; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 9pt">Management fee receivable</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">6,508,345</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">(1</td><td style="color: black; text-align: left">)</td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">950,000</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">7,458,345</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 9pt">Management fee receivable from  related
medical practices</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">403,047</td><td style="color: black; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">403,047</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 9pt">Advance and notes to related parties</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">264,791</td><td style="color: black; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">25,000</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">239,791</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 9pt">Notes receivable</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">65,000</td><td style="color: black; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">65,000</td><td style="color: black; text-align: left"> </td></tr>
</table>
<p style="font: 9pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1)
Included in provision for bad debts.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">JUNE
30, 2013 and 2012</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">NOTE
19 – SUBSEQUENT EVENTS</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company evaluates events that have occurred after the balance sheet date, but before the consolidated financial statements are
issued.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">During
the period from July 1, 2013 through September 30, 2013, the Company has issued 15,000 shares of common stock for costs and expenses
of $109,950 and 3,443 shares of common stock to employees and consultants as compensation valued at $19,315 under a stock bonus
plan.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">On
August 1, 2013, the Company opened a new diagnostic center in Nassau County, NY.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Principles
of Consolidation</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships.
The operating activities of subsidiaries are included in the accompanying consolidated statements from the date of acquisition.
All significant intercompany accounts and transactions have been eliminated in consolidation.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Use
of Estimates</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The most significant estimates
relate to receivable allowances, intangible assets, income taxes and related tax asset valuation allowances, useful lives of property
and equipment, contingencies, revenue recognition and the assessment of litigation. In addition, healthcare industry reforms and
reimbursement practices will continue to impact the Company's operations and the determination of contractual and other allowance
estimates. Actual results could differ from those estimates.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Inventories</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Inventories
consist of purchased parts, components and supplies, as well as work-in-process, and are stated at the lower of cost, determined
on the first-in, first-out method, or market.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Property
and Equipment</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Property
and equipment procured in the normal course of business is stated at cost. Property and equipment purchased in connection with
an acquisition is stated at its estimated fair value, generally based on an appraisal. Property and equipment is being depreciated
for financial accounting purposes using the straight-line method over their estimated useful lives. Leasehold improvements are
being amortized over the shorter of the useful life or the remaining lease term. Upon retirement or other disposition of these
assets, the cost and related accumulated depreciation of these assets are removed from the accounts and the resulting gains or
losses are reflected in the results of operations. Expenditures for maintenance and repairs are charged to operations. Renewals
and betterments are capitalized. Maintenance and repair expenses totaled approximately $598,000 and $371,000 for the years ended
June 30, 2013 and 2012, respectively. The estimated useful lives in years are generally as follows:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic
equipment under capital lease</font></td><td style="width: 10%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 18%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.5</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5–13</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Research, development
and demonstration equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-7</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Machinery and equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2-7</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Furniture and fixtures</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-9</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Leasehold improvements</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2–10</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Building</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">27.5</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr></table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Other
Intangible Assets</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1)
Capitalized Software Development Costs</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 6pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capitalization
of software development costs begins upon the establishment of technological feasibility. Technological feasibility for the Company’s
computer software is generally based upon achievement of a detail program design free of high risk development issues and the
completion of research and development on the product hardware in which it is to be used. The establishment of technological feasibility
and the ongoing assessment of recoverability of capitalized computer software development costs require considerable judgment
by management with respect to certain external factors, including, but not limited to, technological feasibility, anticipated
future gross revenue, estimated economic life and changes in software and hardware technology. Prior to reaching technological
feasibilty those costs are expensed as incurred and included in research and development.</font><br />
</p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 6pt; margin-left: 0pt; text-indent: 22pt; text-align: justify; margin-bottom: 0pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
of capitalized software development costs commences when the related products become available for general release to customers.
Amortization is provided on a product by product basis. The annual amortization is the greater of the amount computed using (a)
the ratio that current gross revenue for a product bears to the total of current and anticipated future gross revenue for that
product, or (b) the straight-line method over the remaining estimated economic life of the product.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 6pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company periodically performs reviews of the recoverability of such capitalized software development costs. At the time a determination
is made that capitalized amounts are not recoverable, based on the estimated cash flows to be generated from the applicable software,
any remaining capitalized amounts are written off.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 12pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2)
Patents and Copyrights</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 6pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
is calculated on the straight-line basis over a period ranging from 15 to 17 years.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 12pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3)
Management Agreement</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 6pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
management agreement was being amortized on the straight line basis over the length of the agreement (15 years). For the year
ended June 30, 2013, the Company recorded an impairment of $357,500 as a result of the closing of a scanning center in New York.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 12pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4)
Non-Competition Agreements</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 6pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
non-competition agreements are being amortized on the straight line basis over the length of the agreement (7 years).</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5)
Customer Relationships</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin-top: 6pt; margin-bottom: 12pt; margin-left: 0pt; text-indent: 22pt; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization
is calculated on the straight line basis over 20 years.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Revenue
Recognition</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Revenue
on sales contracts for scanners, included in “product sales” in the accompanying consolidated statements of operations,
is recognized under the percentage-of-completion method in accordance with FASB ASC 605-35, “Revenue Recognition –
Construction-Type and Production-Type Contracts”. The Company manufactures its scanners under specific contracts that provide
for progress payments. Production and installation take approximately three to six months. The percentage of completion is determined
by the ratio of costs incurred to date on completed sub-assemblies to the total estimated cost for each scanner. Contract costs
include purchased parts and components, direct labor and overhead. Revisions in cost estimates and provisions for estimated losses
on uncompleted contracts, if any, are made in the period in which such losses are determined. The asset, "Costs and Estimated
Earnings in Excess of Billings on Uncompleted Contracts", represents revenues recognized in excess of amounts billed. The
liability, "Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts", represents amounts billed
in excess of revenues recognized.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Revenue
on scanner service contracts is recognized on the straight-line method over the related contract period, usually one year.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Revenue
from sales of other items is recognized upon shipment.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Revenue
under management contracts is recognized based upon contractual agreements for management services rendered by the Company primarily
under various long-term agreements with various medical providers (the "PCs"). As of June 30, 2013, the Company has
twenty management agreements of which three are with PC’s owned by Raymond V. Damadian, M.D., President and Chairman of
the Board of FONAR (“the Related medical practices”) and seventeen are with PC’s, which are all located in the
state of New York (“the New York PC’s”), owned by two unrelated radiologists. The contractual fees for services
rendered to the PCs consists of fixed monthly fees per diagnostic imaging facility ranging from approximately $35,000 to $241,000.
All fees are re-negotiable at the anniversary of the agreements and each year thereafter. Revenue under lease contracts is recognized
based upon contractual agreements for the leasing of medical equipment primarily under long term contracts to various unrelated
PC’s. The lease fees for the medical equipment consist of fixed monthly fees ranging from $2,000 to $19,000. All fees are
re-negotiable at the anniversary of the agreements and each year thereafter.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Patient
fee revenue, net of contractual allowance and discounts, consist of net patient fees received from insurance companies, third
party payors (including federal and state agencies under Medicare and Medicaid programs), hospitals and patients themselves based
mainly upon established contractual billing rates, less allowances for contractual adjustments and discounts. Patient fee revenue
is recorded in the period in which services are provided.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company’s patient fee revenue, net of contractual allowances and discounts less the provision for bad debts for the years
ended June 30, 2013 and 2012 are summarized in the following table.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Year Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Commercial
Insurance/ Managed Care</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,360,536</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Medicare/Medicaid</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">541,602</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Workers'
Compensation/Personal Injury</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,597,416</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,982,311</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Patient
Fee Revenue, net of contractual allowances and discounts</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,481,865</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Provision
for Bad Debts</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(2,584,669</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Patient Fee for Revenue</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,897,196</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Research
and Development Costs</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Research
and development costs are charged to expense as incurred. The costs of materials and equipment that are acquired or constructed
for research and development activities, and have alternative future uses (either in research and development, marketing or production),
are classified as property and equipment and depreciated over their estimated useful lives.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Advertising
Costs</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Advertising
costs are expensed as incurred. Advertising expense approximated $835,000 and $715,000 for the years ended June 30, 2013 and 2012,
respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Shipping
Costs</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company’s shipping and handling costs are included in revenue from product sales and the related expense included in costs
related to product sales is $5,838 and $26,425 for the years ended June 30, 2013 and 2012, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Income
Taxes</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Deferred
tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax basis
of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.</font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Customer
Advances</u></font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Cash
advances and progress payments received on sales orders are reflected as customer advances until such time as revenue recognition
begins.</font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Earnings
Per Share</u></font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Basic
earnings per share (“EPS”) is computed based upon the weighted average number of shares of common stock and stock
equivalents outstanding, net of common stock. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class
Method”, the Company used the Two-Class method for calculating basic earnings per share and applied the if converted method
in calculating diluted earnings per share for the years ended June 30, 2013 and June 30, 2012.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diluted
EPS reflects the potential dilution from the exercise or conversion of all dilutive securities into common stock based on the
average market price of common shares outstanding during the period. For both the year ended June 30, 2013 and June 30, 2012,
diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. </font></p>
<p style="font: 10pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 8pt/92% Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2013</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Basic</u></font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
C Common Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
C Common Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Numerator:</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt; width: 44%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
income Available to common stockholders</font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8,678,542</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8,107,367</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 2%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">145,467</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,776,481</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,392,212</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">97,863</font></td>
<td style="width: 0%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Basic
income per common share</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.46</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.37</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.38</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.00</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.93</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.26</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); height: 33">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Diluted</u></font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
C Common Stock</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">127,504</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">127,504</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
Denominator for diluted earnings per share</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,060,822</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,906,199</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diluted
income per common share</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.34</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.38</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.91</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.26</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 8pt Courier New, Courier, Monospace; margin: 0; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 8pt Courier New, Courier, Monospace; margin: 0; text-align: center"></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Cash
and Cash Equivalents</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company considers all short-term highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Concentration
of Credit Risk</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Cash:
The Company maintains its cash and cash equivalents with various financial institutions, which exceed federally insured limits
throughout the year. At June 30, 2013, the Company had cash on deposit of approximately $6,030,000 in excess of federally insured
limits of $250,000.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Related
Parties: Net revenues from related parties accounted for approximately 15% and 17% of the consolidated net revenues for the years
ended June 30, 2013 and 2012, respectively. Net management fee receivables from the related medical practices accounted for approximately
9% and 13% of the consolidated accounts receivable for the years ended June 30, 2013 and 2012, respectively.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">See
Note 3 regarding the Company’s concentrations in the healthcare industry.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Fair
Value of Financial Instruments</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
financial statements include various estimated fair value information at June 30, 2013 and 2012, as required by ASC topic 820,
"Disclosures about Fair Value of Financial Instruments". Such information, which pertains to the Company's financial
instruments, is based on the requirements set forth in that Statement and does not purport to represent the aggregate net fair
value to the Company.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is
practicable to estimate that value:</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Cash
and cash equivalents: The carrying amount approximates fair value because of the short-term maturity of those instruments.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Receivable
and accounts payable: The carrying amounts approximate fair value because of the short maturity of those instruments.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Notes
receivable: The carrying amount approximates fair value because the discounted present value of the cash flow generated by the
parties approximates the carrying value of the amounts due to the Company.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Long-term
debt, notes payable and accounts payable: The carrying amounts of debt and notes payable approximate fair value due to the length
of the maturities, the interest rates being tied to market indices and/or due to the interest rates not being significantly different
from the current market rates available to the Company.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">All
of the Company's financial instruments are held for purposes other than trading.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Recent
Accounting Pronouncements </u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">In
July 2012, the FASB issued ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350) Testing Indefinite-Lived Intangible Assets
for Impairment. This ASU simplifies how entities test indefinite-lived intangible assets for impairment which improves consistency
in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative
factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than
its carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than
its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in
previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning
after September 15, 2012, early adoption is permitted. The adoption of this standard is not expected to have a material impact
on the Company’s consolidated financial position and results of operations.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">FASB,
the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June
30, 2013 that will become effective in subsequent periods; however, management does not believe that any of those updates would
have significantly affected our financial accounting measures or disclosures had they been in effect during 2013 or 2012, and
it does not believe that any of those pronouncements will have a significant impact on our consolidated financial statements at
the time they become effective.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Reclassifications</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Certain
prior year amounts have been reclassified to conform to the current year presentation. The reclassifications did not have any
effect on reported net income for any periods presented.</font></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2013</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Basic</u></font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
C Common Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
C Common Stock</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Numerator:</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt; width: 44%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
income Available to common stockholders</font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8,678,542</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8,107,367</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 2%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">145,467</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,776,481</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,392,212</font></td>
<td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="width: 6%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">97,863</font></td>
<td style="width: 0%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Basic
income per common share</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.46</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.37</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.38</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.00</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.93</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.26</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); height: 33">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Diluted</u></font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
C Common Stock</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">127,504</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">127,504</font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td>
<td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
Denominator for diluted earnings per share</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,060,822</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,906,199</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diluted
income per common share</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.34</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.38</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.91</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.26</font></td>
<td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Costs
incurred on uncompleted contracts</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,482,384</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,745,307</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Estimated
earnings</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,191,141</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,670,289</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,673,525</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,415,596</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:
Billings to date</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,370,000</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,287,000</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">303,525</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,128,596</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Costs
and estimated earnings in excess of billings on uncompleted contracts</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">445,742</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,128,596</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:  Billings
in excess of costs and estimated earnings on uncompleted contracts</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">142,217</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">303,525</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,128,596</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
advances</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,227,870</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,168,284</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:
Advances on contracts under construction</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,370,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,287,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,857,870</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,881,284</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt; width: 64%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Purchased
parts, components and supplies</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,783,847</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,672,494</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Work-in-process</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">293,241</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">522,455</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,077,088</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,194,949</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capitalized
software developmentcosts</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,668,959</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,368,960</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Patents and copyrights</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,193,800</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,100,511</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Management agreement</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">513,333</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Non-competition agreements</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,100,000</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Customer
relationships</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,800,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">19,762,759</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">10,982,804</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:
Accumulated amortization</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,858,511</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,147,625</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,904,248</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,835,179</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Balance
– Beginning of Year</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,835,179</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,318,311</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amounts capitalized</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,359,907</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">146,163</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Abandon patents
written off</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(66,619</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(76,231</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Impairment of management
agreement</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(357,500</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Amortization</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(866,719</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(553,064</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Balance
– End of Year</font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,904,248</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,835,179</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Years Ending June 30,</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Patents
and Copyrights</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capitalized
Software Development Costs</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Non-competition</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Customer
Relationships</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2014</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,406,735</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">185,745</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">445,276</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 13%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2015</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,378,035</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">201,879</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">400,442</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2016</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,397,159</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">217,434</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">404,011</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2017</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,418,301</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">232,987</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">409,600</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2018</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,370,948</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">234,900</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">360,334</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">585,714</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Thereafter</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,933,070</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,070,433</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">103,112</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">976,192</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,783,333</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,904,248</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,143,378</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,122,775</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,904,762</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,733,333</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic
equipment under capital leases</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">620,307</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,417,300</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">18,567,787</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,138,898</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Research, development
and demonstration equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,500,902</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,861,199</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Machinery and equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,987,159</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,985,215</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Furniture and fixtures</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,952,449</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,212,149</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Leasehold improvements</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,669,338</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,545,974</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Building</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">939,614</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">939,614</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">37,237,556</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">28,100,349</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Less:
Accumulated depreciation and amortization</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">19,713,062</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">24,926,902</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">17,524,494</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,173,447</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Number
of Options</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Exercise Price</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Aggregate
Intrinsic Value</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt; width: 55%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Outstanding,
June 30, 2011</font></td><td style="width: 4%; font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 9%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">22,537</font></td><td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 9%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">30.27</font></td><td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 9%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="width: 1%; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Granted</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Exercised</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Forfeited
/ Expired</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(8,515</font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">34.41</font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Outstanding,
June 30, 2012</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,022</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">27.76</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Granted</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Exercised</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Forfeited
/ Expired</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(7,412</font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">26.65</font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Outstanding,
June 30, 2013</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,610</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">29</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right; border-bottom: Black 2pt double; border-top: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Exercisable
at:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-indent: 8.85pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2012</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,022</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">27.76</font></td><td style="font: 9pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Courier New, Courier, Monospace; color: black; text-indent: 8.85pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2013</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,610</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">29.00</font></td><td style="font: 10pt Courier New, Courier, Monospace; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Management
fee receivable</font></td><td style="width: 10%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 18%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,667,259</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Medical
receivables</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,389,953</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Prepaid
expenses and other current assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">10,262</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Property
and equipment</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,912,650</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Intangible
assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Goodwill</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,767,098</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other
assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">332,949</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other
current liabilities</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(6,323</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Long
term debt</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(273,848</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
assets acquired</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">40,000,000</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid">June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; color: black; text-align: justify; padding-left: 5.4pt">Notes payable of $580,000 requiring aggregate monthly payments of $20,106, including interest at a rate of 15% per annum through June 2013.</td><td style="width: 4%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 12%; color: black; text-align: right">—  </td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 4%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 12%; color: black; text-align: right">214,355</td><td style="width: 1%; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $720,841 as of June 30, 2013.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">461,648</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">481,615</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable requiring monthly payments of $12,150, including interest at a rate of 5% per annum through January 2014, seven monthly payments of $31,000 commencing February 2014 and a final payment of $5,091 in September 2014.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">271,340</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">423,280</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable from the Fair Haven acquisition requires three monthly payments of $15,000, twelve monthly payments of $20,000 and six monthly payments of $25,000, including interest at a rate of 8.58% per annum through November 2011 then 6 payments of $25,000. The loan is collateralized by equipment which, as of June 30, 2013, has been fully depreciated.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">42,500</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable from the Fair Haven acquisition requires monthly payments of $21,000, including interest at a rate of 4.5% per annum through February 2011 and a final payment of $533,783 in March 2011. The loan is collateralized by equipment which, as of June 30, 2013, has been fully depreciated.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">187,707</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable from the Fair Haven acquisition requires monthly payments of $18,850, including interest at a rate of 11.2% per annum through January 2014. The loan is collateralized by equipment with a net book value of $95,026 as of June 30, 2013.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">127,173</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">326,890</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable requiring monthly principal installments of $4,100 and interest computed on the unpaid principal amount at a rate of 5% per annum through April 2017. The note is secured by certain assets of the Company.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">188,600</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">237,800</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable of $400,000 entered into for the purchase of 34.2% interest in a management company requiring payments of $100,000 on January 2, 2012 and $300,000 on January 2, 2013, including interest at a rate of 10% per annum through January 2013. The lender had a security interest in Imperial’s members interest until the note was paid in full.</td><td style="color: black"> </td>
<td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">300,000</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">The revolving credit note is due by March 5, 2016. The Company can prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2,400,000</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-left: 5.4pt">The term loan is payable with interest only for 6 consecutive months commencing at the inception of the loan followed by 60 consecutive monthly installments, commencing October 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">11,000,000</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: justify; padding-left: 5.4pt">Note payable requiring 12 consecutive interest only payments commencing at the inception of the loan followed by 48 consecutive monthly payments, commencing May 1, 2014. The note bears interest at a rate of 4.75% per annum and is payable monthly.  The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">689,646</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">—  </td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Other (including capital leases for property and equipment).</td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">634,367</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">416,750</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">15,772,774</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2,630,897</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Current portion</td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">2,885,769</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">1,853,623</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="color: black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right">12,887,005</td><td style="padding-bottom: 2.5pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right">777,274</td><td style="padding-bottom: 2.5pt; color: black; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: middle; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Years
Ending
June
30, </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 30%; color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2014</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 1%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 17%; color: black; text-align: right; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,885,769</font></td><td style="width: 25%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2015</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,488,426</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2016</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,882,554</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2017</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,440,100</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: middle"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2018</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,372,503</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Thereafter</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">703,422</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">15,772,774</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Current:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-indent: 8.1pt; padding-left: 5.4pt">Federal</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(125,000</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(112,000</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: 8.1pt; padding-left: 5.4pt">State</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(71,001</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(29,125</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(196,001</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(141,125</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Deferred:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: 8.1pt; padding-left: 5.4pt">Federal</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,336,454</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: 8.1pt; padding-left: 5.4pt">State</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">137,438</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,473,892</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Benefit (Provision) for income taxes</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,277,891</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(141,125</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Years
Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; color: black; text-align: left; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Taxes
at federal statutory rate</font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">34.0</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(34.0</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">State
and local income taxes (benefit), net of federal benefit</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6.0</font></td><td style="color: black; text-align: left"></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(6.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Permanent
differences</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.6</font></td><td style="color: black; text-align: left"></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.2</font></td><td style="color: black; text-align: left"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(Decrease)
increase in the valuation allowance and true ups</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(76.2</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">40.8</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 17.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Effective
income tax rate</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(35.6</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)%</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.0</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Deferred
tax assets:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Allowance
for doubtful accounts</font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,139,291</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,656,468</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Non-deductible
accruals</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">264,062</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">221,897</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
operating carryforwards</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">58,052,831</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">61,772,391</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Tax
credits</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,873,204</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,769,943</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Property
and equipment and depreciation</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,070,291</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,990,284</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Inventory</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">84,136</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">71,483,815</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">74,410,983</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Valuation
allowance</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(68,548,065</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(73,754,414</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
deferred tax assets</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,935,750</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">656,569</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Deferred
tax liabilities: Inventory</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(51,109</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capitalized
software development costs</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(461,858</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(605,460</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
deferred tax liabilities</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(461,858</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(656,566</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
deferred tax asset</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,473,892</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Accrued
salaries, commissions and payroll taxes</font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">710,897</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">569,966</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Accrued
interest</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">117,480</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">190,712</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Litigation
accruals</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">809,349</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">493,349</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Sales
tax payable</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,858,652</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,764,297</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Legal
and other professional fees</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">569,049</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">577,435</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Accounting
fees</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">305,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">345,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Insurance
premiums</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">13,443</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">12,634</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Interest
and penalty – sales tax</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,321,858</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,115,539</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Penalty
– 401k plan</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">250,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">250,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Rent</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">147,665</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">207,823</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">390,968</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">166,486</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8,494,361</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,693,241</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right; vertical-align: bottom; border-bottom: Black 1pt solid">Year
Ending June 30, </td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left; border-bottom: Black 1pt solid"> </td><td style="color: black; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">Facilities
And Equipment (Operating Lease)</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 22%; color: black; text-align: left"> </td><td style="width: 22%; color: black; text-align: right">2014</td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 10%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left">$</td><td style="width: 22%; color: black; text-align: right">4,211,719</td><td style="width: 22%; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2015</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">3,586,189</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2016</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2,874,483</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2017</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">1,208,342</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2018</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">835,680</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Thereafter</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">1,245,804</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Total
minimum obligations</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right">13,962,217</td><td style="padding-bottom: 2.5pt; color: black; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right; border-bottom: Black 1pt solid"><font style="font-family: Arial, Helvetica, Sans-Serif">Year
Ending June 30,</font></td><td style="color: black; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 22%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 24%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2014</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 10%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 20%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">419,766</font></td><td style="width: 22%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2015</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">96,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2016</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">96,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2017</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">96,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2018</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">88,000</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> $</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">795,766</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Years Ended June 30,</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 10%"> </td>
<td style="width: 47%; color: black; text-align: left; padding-left: 5.4pt; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Loss
from investment</font></td><td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(48,777</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="width: 6%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 10%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 5.4pt; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Litigation
settlement</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">716,250</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">56,194</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 5.4pt; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Gain
on sale of equipment</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">557,473</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Impairment
of management agreement</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(357,500</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other
expense</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(141,958</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(11,138</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">725,488</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">45,056</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Purchase
consideration:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Assets
acquired:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 13%"> </td>
<td style="width: 53%; color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Management
fee receivable</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 16%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,667,259</font></td><td style="width: 13%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Medical
receivable</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,389,953</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Prepaid
expenses and other current assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">10,262</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Property
and equipment</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,912,650</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Intangible
assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Goodwill</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,767,098</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Other
assets</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">332,949</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: Black; font: normal 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">                    Total
assets acquired</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">40,280,171</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Less
liabilities assumed:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Other
current liabilities</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,323</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">     Long
term debt</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">273,848</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: Black; font: normal 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 1.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">                    Total
liabilities assumed</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">280,171</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Manufacturing
and Servicing of Medical Equipment</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Management
of Diagnostic Imaging Centers</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Totals</font></td></tr>
<tr style="vertical-align: bottom">
<td style="color: black; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Fiscal 2013:</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
revenues from external customers</font></td><td style="width: 5%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14,891,075</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">34,250,739</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">49,141,814</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Intersegment
net revenues</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Income
from operations</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">139,390</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,396,357</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,535,747</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">541,551</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,879,626</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,421,177</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Compensatory
element of stock  issuances</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">415,021</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">415,021</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
identifiable assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">15,071,225</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">58,079,425</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">73,150,650</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capital
expenditures</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">237,636</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">25,170,303</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">25,407,939</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Fiscal
2012:</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
revenues from external  customers</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">18,707,006</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">20,737,413</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">39,444,419</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Intersegment
net revenues</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">810,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">810,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Income
from operations</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,666,574</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,539,977</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,206,551</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">697,100</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,533,150</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,230,250</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Compensatory
element of stock  issuances</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">155,068</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">25,350</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">180,418</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
identifiable assets</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">15,144,291</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">18,471,177</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">33,615,468</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Capital
expenditures</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">404,530</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">822,842</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,227,372</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid">Description</td><td> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Balance June 30, 2011</td><td style="text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Additions</td><td style="text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Deductions</td><td style="text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Balance June 30, 2012</td><td style="text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Additions</td><td style="text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Deductions</td><td style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Balance June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 28%; text-align: left">Receivables from equipment sales and service contracts</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 4%; text-align: right">1,777,794</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 4%; text-align: right">(1</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 4%; text-align: right">100,442</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 4%; text-align: right">25,249</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 4%; text-align: right">1,852,987</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 4%; text-align: right">(1</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 4%; text-align: right">(92,454</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 4%; text-align: right">1,503,171</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 4%; text-align: right">257,362</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Management fee receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,508,345</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">950,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,458,345</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,636,975</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,095,320</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Management fee receivable from related medical practices</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Medical receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,584,669</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,584,669</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Advance and notes to related parties</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">264,791</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">239,791</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,412</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Notes receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">65,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">65,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">65,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
1.46
1.00
1.37
0.93
0.38
0.26
5933318
5778695
382513
382513
1.34
0.91
0.38
0.26
1482384
3745307
1191141
2670289
2673525
6415596
2370000
5287000
303525
1128596
4227870
9168284
-2370000
-5287000
1857870
3881284
1783847
1672494
293241
522455
620307
1417300
18567787
4138898
3500902
9861199
4987159
4985215
2952449
2212149
5669338
4545974
939614
939614
37237556
28100349
19713062
24926902
7668959
6368960
4193800
4100511
513333
7858511
7147625
11904248
3835179
2143378
2122775
3904762
3733333
3835179
4318311
9359907
146163
-66619
-76231
11904248
3835179
6610
14022
22537
7412
-8515
29
27.76
30.27
26.65
34.41
2885769
2488426
4882554
2440100
2372503
703422
15772774
-125000
-112000
-71001
-29125
6139291
4656468
264062
221897
5873204
5769943
1070291
1990284
71483815
74410983
-68548065
-73754414
2935750
656569
-51109
-461858
-605460
-461858
-656566
2473892
710897
569966
117480
190712
809349
493349
2858652
2764297
569049
577435
305000
345000
13443
12634
250000
250000
390968
166486
4211719
3586189
2874483
1208342
835680
1245804
13962217
419766
96000
795766
-48777
716250
56194
1200000
810000
1200000
810000
7535747
7206551
139390
7396357
2666574
4539977
2421177
2230250
541551
1879626
697100
1533150
415021
180418
415021
155068
25350
73150650
33615468
15071225
58079425
15144291
18471177
25407939
1227372
237636
25170303
404530
822842
8126476
4443595
5094687
6667259
7389953
31
31
597
590
38
38
3939140
6922465
10841935
11674541
110000
110000
7481865
1360536
541602
3597416
1982311
7481865
21493599
14060275
7859944
6677138
3656635
5387923
3213420
3453116
32603
32536
12998243
8733823
3515706
3588282
1438560
1242656
12501621
8749090
1544521
1050442
41606067
32237868
7535747
7206551
500362
478663
217598
243254
7978471
7016198
10256362
6875073
1577820
1098592
0.26
0.26
P2Y6M
P27Y6M
5
3
2
3
2
13
7
7
9
10
40000000
598000
371000
357500
35000
2000
241000
19000
2584669
4897196
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"></font><br />
</p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Goodwill</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Generally
accepted accounting principles in the United States require the Company to perform a goodwill impairment test annually and more
frequently when negative conditions or a triggering event arises. Impairment of goodwill is tested at the reporting unit level
by comparing the reporting unit’s carrying amount, including goodwill to the fair value of the reporting unit. If the carrying
amount of the reporting unit exceeds its fair value, goodwill is considered potentially impaired and a second step is performed
to measure the amount of impairment loss, if any.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Acquired
assets and assumed liabilities</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Pursuant
to ASC No. 805-10-25, if the initial accounting for a business combination is incomplete by the end of the reporting period in
which the combination occurs, but during the allowed measurement period not to exceed one year from the acquisition date, the
company retrospectively adjusts the provisional amounts recognized at the acquisition date by means of adjusting the amount recognized
for goodwill.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Long-Lived
Assets</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0 1.8pt 0 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company periodically assesses the recoverability of long-lived assets, including property and equipment and intangibles, other
than goodwill, when there are indications of potential impairment, based on estimates of undiscounted future cash flows. The amount
of impairment is calculated by comparing anticipated discounted future cash flows with the carrying value of the related asset.
In performing this analysis, management considers such factors as current results, trends, and future prospects, in addition to
other economic factors.</font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><u>Allowance
for Doubtful Accounts – Patient Fee</u></font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><font style="font: 10pt Arial, Helvetica, Sans-Serif">The
Company provides for medical receivables that could become uncollectible by establishing an allowance for doubtful accounts in
order to adjust medical receivables to estimated net realizable value. In evaluating the collectability of medical receivables,
the Company considers a number of factors, including the age of the account, historical collection experiences, payor type, current
economic conditions and other relevant factors. There are various factors that impact collection trends, such as payor mix, changes
in the economy, increase burden on copayments to be made by patients with insurance and business practices related to collection
efforts. These factors continuously change and can have an impact on collection trends and the estimation process.</font></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic
equipment under capital lease</font></td><td style="width: 10%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 18%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.5</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diagnostic equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5–13</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Research, development
and demonstration equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-7</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Machinery and equipment</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2-7</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Furniture and fixtures</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-9</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Leasehold improvements</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2–10</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Building</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">27.5</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Year Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Commercial
Insurance/ Managed Care</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,360,536</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Medicare/Medicaid</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">541,602</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Workers'
Compensation/Personal Injury</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,597,416</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Other</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,982,311</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Patient
Fee Revenue, net of contractual allowances and discounts</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,481,865</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Provision
for Bad Debts</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(2,584,669</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Patient Fee for Revenue</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,897,196</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
The Year Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt; width: 64%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
Facilities Owned or Managed (at Beginning of Year)</font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">10</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Facilities
Added by:</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 0.25in"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Acquisition</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">14</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 0.25in"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Internal development</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Managed
Facilities Closed</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -13.5pt; padding-left: 13.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
Facilities Owned or Managed (at End of Year)</font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">24</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font-size: 11pt; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Fair
Value</font></td><td style="font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Non
compete</font></td><td style="width: 8%; font-size: 11pt; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,100,000</font></td><td style="width: 1%; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 8%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">7
years</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Customer
relationships</font></td><td style="font-size: 11pt; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,800,000</font></td><td style="font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">20
years</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Developed
software</font></td><td style="font-size: 11pt; color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,300,000</font></td><td style="padding-bottom: 1pt; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">5
years</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
intangible assets</font></td><td style="font-size: 11pt; color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font-size: 11pt; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9,200,000</font></td><td style="padding-bottom: 2.5pt; font-size: 11pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Year
ended June 30</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total
Revenues - Net</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">69,723,542</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">68,725,401</font></td><td style="width: 1%; color: black; text-align: left"></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Income - Controlling Interests</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">17,442,337</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(19,292,852</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Common Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">16,294,377</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(19,292,852</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Class A Non-Voting   Preferred Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">855,597</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Class C Common Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">292,363</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Basis
Net Income Per Common Share Available to Common Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.75</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(3.34</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Diluted
Net Income Per Common Share Available to Common Stockholders</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.69</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(3.34</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Basic
and Diluted Income Per Share - Common C</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.76</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> $</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Basic Shares Outstanding</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,933,318</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,778,695</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Diluted Shares Outstanding</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,060,822</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5,909,199</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Basic and Diluted Shares   Outstanding - Class C Common</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">382,513</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Class
A
Members</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Class
B
Member</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Opening
Members’ Equity</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt; width: 56%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Share of Net
Income</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 16%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">543,225</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 16%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,397,080</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Contributions</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">19,800,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">20,200,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; text-indent: -9pt; padding-left: 17.85pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Distributions</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(816,750</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(833,250</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Ending Members’
Equity at June 30, 2013</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">19,526,475</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="color: black; text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">20,763,830</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2013</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
A
Members</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
B
Member</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
A
Members</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
B
Member</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Opening
Members’ Equity</font></td><td style="width: 3%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,918,365</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 3%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,824,945</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 3%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6,069,642</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 3%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">208,925</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Share of Net Income</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">959,254</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,947,836</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,128,723</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,616,020</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Contributions</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Distributions</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(853,200</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,080,000</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Redemption</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,424,900</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,200,000</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Ending Members’ Equity at June
30,</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,599,519</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,772,781</font></td><td style="text-align: left"></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,918,365</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right; border-top: Black 1pt solid; border-bottom: Black 2pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,824,945</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Years Ended June 30,</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="3"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 19%; color: black; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Holland</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.0</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.1</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="width: 25%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">England</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3.6</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">16.9</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Germany</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.1</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: left; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif; color: black">Libya</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.1</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3.80</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">17.0</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">For
the Years Ended June 30,</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2013</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2012</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%"> </td>
<td style="width: 19%; color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Spain</font></td><td style="width: 1%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.9</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="width: 4%; color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 11%; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.8</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="width: 25%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Puerto
Rico</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.9</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Switzerland</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.1</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Germany</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.3</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">England</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.8</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Holland</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.2</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2.6</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Scotland</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.7</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Canada</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.8</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Australia</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1.0</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.4</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="color: black; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Libya</font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.2</font></td><td style="color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td>
<td style="color: black; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Greece</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0.4</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td>
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">8.2</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td><td style="color: black; padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">9.9</font></td><td style="padding-bottom: 2.5pt; color: black; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td> </td></tr>
</table>
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--06-30
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