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<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Principles of Consolidation</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The unaudited condensed consolidated financial
statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships (collectively
the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Earnings Per Share</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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 income per share and applied the if converted method in calculating diluted income per share for the
three months ended September 30, 2014 and 2013.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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 the three months ended September 30, 2014 and 2013, diluted EPS for common shareholders includes
128 shares upon conversion of Class C Common.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 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="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Three months ended <br />September 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Three months ended <br />September 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Total</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Class C Common Stock</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Total</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Class C Common Stock</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-decoration: underline; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Basic <br />Numerator: <br />Net income available to common stockholders</td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,535</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,370</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">42</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,437</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,277</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">41</td><td style="width: 1%; padding-bottom: 2.5pt; 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">Denominator: <br />Weighted average shares outstanding</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">6,050</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">6,050</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">383</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">5,978</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">5,978</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">383</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Basic income per common share</td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.42</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.39</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.41</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline; text-align: left; padding-left: 5.4pt">Diluted <br />Denominator: <br />Weighted average shares outstanding</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">6,050</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">383</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">5,978</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">383</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Convertible Class C Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">128</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><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">128</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">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">6,178</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">383</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">6,106</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">383</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.37</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
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383000
5978000
6050000
5978000
2860000
1885000
2039000
1746000
4899000
3631000
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Recent Accounting Pronouncements</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u> </u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The FASB has issued ASU No. 2014-09, <i>Revenue
from Contracts with Customers</i>. This ASU supercedes the revenue recognition requirements in Accounting Standards Codification
605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity
recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration
to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and
should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially
applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material
impact on the Company’s condensed consolidated financial position and results of operations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">FASB, the Emerging Issues Task Force and the
SEC have issued certain other accounting standards, updates, and regulations as of September 30, 2014 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 2014 or 2013, 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.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Reclassifications</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified
to conform to the current year presentation. The reclassifcations did not have any effect on reported consolidated net income for
any periods presented.</p>
1124000
835000
-117000
-117000
627000
664000
2623000
2665000
442000
439000
127000
325000
2420000
2374000
623000
849000
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Earnings Per Share</u> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 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="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Three months ended <br />September 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Three months ended <br />September 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Total</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="text-align: center"> </td><td style="text-align: center"> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Class C Common Stock</font></td><td style="text-align: center"> </td><td style="text-align: center"> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Total</font></td><td style="text-align: center"> </td><td style="text-align: center"> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="text-align: center"> </td><td style="text-align: center"> </td>
<td style="text-align: center"> </td><td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Class C Common Stock</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-decoration: underline; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Basic <br />Numerator: <br />Net income available to common stockholders</td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,535</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,370</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">42</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,437</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,277</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">41</td><td style="width: 1%; padding-bottom: 2.5pt; 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">Denominator: <br />Weighted average shares outstanding</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">6,050</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">6,050</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">383</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">5,978</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">5,978</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">383</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Basic income per common share</td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.42</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.39</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.41</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline; text-align: left; padding-left: 5.4pt">Diluted <br />Denominator: <br />Weighted average shares outstanding</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">6,050</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">383</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">5,978</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">383</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Convertible Class C Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">128</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><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">128</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">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">6,178</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">383</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">6,106</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">383</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.37</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
137252000
3146000
2040000
3641000
3787000
3253000
3427000
403000
403000
3656000
3830000
1478000
618000
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Accounts Receivable, Medical Receivable and Management and Other
Fees Receivable</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Receivables, net is comprised of the following
at September 30, 2014, June 30, 2014:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></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="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -17.1pt; padding-left: 17.1pt"> </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: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Gross Receivable</font></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: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Allowance for doubtful accounts</font></td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Net</font></td><td style="padding-bottom: 1pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Accounts receivable</td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">5,443</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">257</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">5,186</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Accounts receivable - related party</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">90</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">—  </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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">90</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Medical receivables</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">24,843</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,779</td><td style="padding-bottom: 2.5pt; 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; text-indent: -17.1pt; padding-left: 17.1pt">Management and other fees receivable</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">24,359</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,407</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,952</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Management and other fees receivable from related medical practices ("PC’s")</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,656</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">403</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,253</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></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="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -17.1pt; padding-left: 17.1pt"> </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: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Gross Receivable</font></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: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Allowance for doubtful accounts</font></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: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Net</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Accounts receivable</td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">4,707</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">257</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">4,450</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Accounts receivable - related party</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </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">—  </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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Medical receivables</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,726</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,918</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,808</td><td style="padding-bottom: 2.5pt; 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; text-indent: -17.1pt; padding-left: 17.1pt">Management and other fees receivable</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">22,872</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,902</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,970</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Management and other fees receivable from related medical practices ("PC’s")</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,830</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">403</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,427</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Patient Fee Revenue</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 90%">
<tr style="text-align: center; vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt; text-align: left; text-indent: -11pt; vertical-align: top"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">For the Three Months Ended September 30,</td></tr>
<tr style="text-align: center; vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 64%; text-align: left; text-indent: -12.6pt; padding-left: 12.6pt; vertical-align: bottom">Commercial Insurance/ Managed Care</td><td style="width: 4%; text-align: left; vertical-align: bottom"> </td>
<td style="width: 1%; text-align: left; vertical-align: bottom">$</td><td style="width: 12%; text-align: right; vertical-align: bottom">1,080</td><td style="width: 1%; text-align: left; vertical-align: bottom"> </td><td style="width: 4%; text-align: left; vertical-align: bottom"> </td>
<td style="width: 1%; text-align: left; vertical-align: bottom">$</td><td style="width: 12%; text-align: right; vertical-align: bottom">1,100</td><td style="width: 1%; text-align: left; vertical-align: bottom"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-indent: -12.6pt; padding-left: 12.6pt; text-align: left; vertical-align: bottom">Medicare/Medicaid</td><td style="text-align: left; vertical-align: bottom"> </td>
<td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom">297</td><td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: left; vertical-align: bottom"> </td>
<td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom">379</td><td style="text-align: left; vertical-align: bottom"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt; vertical-align: bottom">Workers' Compensation/Personal Injury</td><td style="text-align: left; vertical-align: bottom"> </td>
<td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom">3,695</td><td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: left; vertical-align: bottom"> </td>
<td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom">2,895</td><td style="text-align: left; vertical-align: bottom"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="padding-bottom: 1pt; text-indent: -12.6pt; padding-left: 12.6pt; text-align: left; vertical-align: bottom">Other</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">1,715</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">1,453</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt">Patient Fee Revenue, net of contractual allowances and discounts</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,787</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,827</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -12.6pt; padding-left: 12.6pt">Provision for Bad Debts</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">(3,146</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">(2,040</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -12.6pt; padding-left: 12.6pt">Net Patient Fee for Revenue</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,641</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,787</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font-size: 12pt">Inventories</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 75%">
<tr style="text-align: center; vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2014</td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt">Purchased parts, components and supplies</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 17%; text-align: right">2,131</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,094</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: left; vertical-align: bottom">Work-in-process</td><td> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">291</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">350</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">TOTAL INVENTORIES</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,422</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,444</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font-size: 11pt">Information
relating to uncompleted contracts as of September 30, 2014 is as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 80%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"> </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: center; vertical-align: bottom"><font style="font-family: Arial, Helvetica, Sans-Serif">September
30, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-family: Arial, Helvetica, Sans-Serif">June
30, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; text-indent: -9pt; padding-left: 9pt">Costs incurred on uncompleted contracts</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,860</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,885</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt">Estimated earnings</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">2,039</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">1,746</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -9pt; padding-left: 9pt">Subtotal</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,899</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,631</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt">Less: Billings to date</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">3,421</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">3,013</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Total Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,478</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">618</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font-size: 11pt">Included
in the accompanying condensed consolidated balance sheets under the following captions:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 80%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"> </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: center; vertical-align: bottom"><font style="font-family: Arial, Helvetica, Sans-Serif">September
30, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-family: Arial, Helvetica, Sans-Serif">June
30, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; text-indent: -9pt; padding-left: 9pt">Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,620</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">760</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt">Less: Billings in excess of costs and estimated earnings on uncompleted contracts</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">142</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">142</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Total Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,478</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">618</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font-size: 11pt">Other intangible
assets</font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 75%">
<tr style="text-align: center; vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">June 30, <br />2014</td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 62%; text-align: left; padding-left: 5.4pt">Capitalized software development costs</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 17%; text-align: right">7,418</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">7,418</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">Patents and copyrights</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,454</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,408</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: left; vertical-align: top">Non-compete</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,100</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,100</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Customer relationships</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">3,800</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">3,800</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">Gross Other intangible assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,772</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,726</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Accumulated amortization</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">9,539</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">9,217</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Other Intangible Assets</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">10,233</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,509</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font-size: 11pt">Other current
liabilities</font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 75%">
<tr style="text-align: center; vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">September 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">June 30,</p>
<p style="margin-top: 0; margin-bottom: 0">2014</p></td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 59%; text-align: left; text-indent: -9pt; padding-left: 9pt">Accrued salaries, commissions and payroll taxes</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">1,124</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">835</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Accrued interest</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Litigation accruals</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">627</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">664</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales tax payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,623</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,665</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Legal and other professional fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">442</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">439</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Accounting fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">127</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">325</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Self-funded health insurance reserve</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">354</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">306</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Interest and penalty - sales tax</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,420</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,374</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase scanners</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">785</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">450</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; text-align: left; vertical-align: top">Other</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">623</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">849</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">TOTAL OTHER CURRENT LIABILITIES</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">9,242</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">9,024</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font-size: 11pt">Summarized financial
information concerning the Company's reportable segments is shown:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></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="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Medical <br />Equipment</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Management <br />Of Diagnostic <br />Imaging <br />Centers</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Totals</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline; padding-left: 5.4pt">For the three months ended Sept. 30, 2014</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></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 44%; text-align: left; padding-left: 5.4pt">Net revenues from external customers</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,790</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">14,195</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,985</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Inter-segment net revenues</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">501</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">501</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">378</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,060</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,438</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">76</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">812</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">888</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">46</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">72</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>For the three months ended Sept. 30, 2013</u></p></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></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Net revenues from external customers</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,568</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">14,263</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">16,831</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Inter-segment net revenues</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">495</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">495</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">162</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,891</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">4,053</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">108</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">874</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">982</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">47</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">182</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">229</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 1 - BASIS OF PRESENTATION & LIQUIDITY & CAPITAL RESOURCES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Basis of Presentation</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the three months ended September 30, 2014, are not necessarily indicative of the results
that may be expected for the fiscal year ending June 30, 2015. For further information, refer to the consolidated financial statements
and footnotes thereto included in the Company's Annual Report on Form 10-K filed on September 29, 2014 for the fiscal year ended
June 30, 2014.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Principles of Consolidation</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The unaudited condensed consolidated financial
statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships (collectively
the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Earnings Per Share</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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 income per share and applied the if converted method in calculating diluted income per share for the
three months ended September 30, 2014 and 2013.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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 the three months ended September 30, 2014 and 2013, diluted EPS for common shareholders includes
128 shares upon conversion of Class C Common.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 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="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Three months ended <br />September 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Three months ended <br />September 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Total</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Class C Common Stock</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Total</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">Class C Common Stock</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-decoration: underline; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Basic <br />Numerator: <br />Net income available to common stockholders</td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,535</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,370</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">42</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,437</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">2,277</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 6%; border-bottom: Black 2.5pt double; text-align: right">41</td><td style="width: 1%; padding-bottom: 2.5pt; 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">Denominator: <br />Weighted average shares outstanding</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">6,050</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">6,050</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">383</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">5,978</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">5,978</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">383</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Basic income per common share</td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.42</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.39</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.41</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline; text-align: left; padding-left: 5.4pt">Diluted <br />Denominator: <br />Weighted average shares outstanding</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">6,050</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">383</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">5,978</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">383</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Convertible Class C Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">128</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><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">128</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">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">6,178</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">383</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">6,106</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">383</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </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">0.38</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.11</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.37</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">0.11</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Recent Accounting Pronouncements</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u> </u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The FASB has issued ASU No. 2014-09, <i>Revenue
from Contracts with Customers</i>. This ASU supercedes the revenue recognition requirements in Accounting Standards Codification
605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity
recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration
to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and
should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially
applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material
impact on the Company’s condensed consolidated financial position and results of operations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">FASB, the Emerging Issues Task Force and the
SEC have issued certain other accounting standards, updates, and regulations as of September 30, 2014 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 2014 or 2013, 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.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Reclassifications</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified
to conform to the current year presentation. The reclassifcations did not have any effect on reported consolidated net income for
any periods presented.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT
AND OTHER FEES RECEIVABLE</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Accounts Receivable, Medical Receivable and Management and Other
Fees Receivable</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Receivables, net is comprised of the following
at September 30, 2014, June 30, 2014:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></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="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -17.1pt; padding-left: 17.1pt"> </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: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Gross Receivable</font></td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Allowance for doubtful accounts</font></td><td style="padding-bottom: 1pt; text-align: center"> </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: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Net</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Accounts receivable</td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">5,443</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">257</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">5,186</td><td style="width: 1%; padding-bottom: 2.5pt; 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; text-indent: -17.1pt; padding-left: 17.1pt">Accounts receivable - related party</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">90</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">90</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Medical receivables</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">24,843</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,064</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,779</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Management and other fees receivable</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">24,359</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,407</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,952</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Management and other fees receivable from related medical practices ("PC’s")</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,656</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">403</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">3,253</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></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="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -17.1pt; padding-left: 17.1pt"> </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: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Gross Receivable</font></td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Allowance for doubtful accounts</font></td><td style="padding-bottom: 1pt; text-align: center"> </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: center"><font style="font-family: Arial, Helvetica, Sans-Serif">Net</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Accounts receivable</td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">4,707</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">257</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">4,450</td><td style="width: 1%; padding-bottom: 2.5pt; 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; text-indent: -17.1pt; padding-left: 17.1pt">Accounts receivable - related party</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Medical receivables</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,726</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,918</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,808</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Management and other fees receivable</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">22,872</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,902</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,970</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt">Management and other fees receivable from related medical practices ("PC’s")</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">403</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">3,427</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">The Company's customers are concentrated in the healthcare industry.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Accounts Receivable</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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. </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Management and Other Fees Receivable</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company's receivables from the related and
non-related professional corporations (PC's) substantially consist of fees outstanding under management agreements. Payment of
the outstanding fees is dependent on collection by the PC's of fees from third party medical reimbursement organizations, principally
insurance companies and health management organizations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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 54% and 51% of the PCs’
net revenues for the three months ended September 30, 2014 and 2013, respectively, 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 condensed consolidated financial statements and have historically been within management's
expectations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net revenues from management and other fees
charged to the related PCs accounted for approximately 10.1% and 13.9% of the consolidated net revenues for the three months ended
September 30, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s patient fee revenue, net
of contractual allowances and discounts less the provision for bad debts for the three months ended September 30, 2014 and 2013
are summarized in the following table.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 90%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="text-align: center; vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">For the Three Months Ended September 30,</td></tr>
<tr style="text-align: center; vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 64%; text-align: left; text-indent: -12.6pt; padding-left: 12.6pt; vertical-align: bottom">Commercial Insurance/ Managed Care</td><td style="width: 4%; text-align: left; vertical-align: bottom"> </td>
<td style="width: 1%; text-align: left; vertical-align: bottom">$</td><td style="width: 12%; text-align: right; vertical-align: bottom">1,080</td><td style="width: 1%; text-align: left; vertical-align: bottom"> </td><td style="width: 4%; text-align: left; vertical-align: bottom"> </td>
<td style="width: 1%; text-align: left; vertical-align: bottom">$</td><td style="width: 12%; text-align: right; vertical-align: bottom">1,100</td><td style="width: 1%; text-align: left; vertical-align: bottom"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-indent: -12.6pt; padding-left: 12.6pt; text-align: left; vertical-align: bottom">Medicare/Medicaid</td><td style="text-align: left; vertical-align: bottom"> </td>
<td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom">297</td><td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: left; vertical-align: bottom"> </td>
<td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom">379</td><td style="text-align: left; vertical-align: bottom"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt; vertical-align: bottom">Workers' Compensation/Personal Injury</td><td style="text-align: left; vertical-align: bottom"> </td>
<td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom">3,695</td><td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: left; vertical-align: bottom"> </td>
<td style="text-align: left; vertical-align: bottom"> </td><td style="text-align: right; vertical-align: bottom">2,895</td><td style="text-align: left; vertical-align: bottom"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="padding-bottom: 1pt; text-indent: -12.6pt; padding-left: 12.6pt; text-align: left; vertical-align: bottom">Other</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">1,715</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">1,453</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt">Patient Fee Revenue, net of contractual allowances and discounts</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,787</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,827</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -12.6pt; padding-left: 12.6pt">Provision for Bad Debts</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">(3,146</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">(2,040</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -12.6pt; padding-left: 12.6pt">Net Patient Fee for Revenue</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">3,641</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,787</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt">NOTE 4 - INVENTORIES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Inventories included
in the accompanying condensed consolidated balance sheets consist of the following:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 75%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="text-align: center; vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2014</td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt">Purchased parts, components and supplies</td><td style="width: 3%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 16%; text-align: right">2,131</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,094</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: left; vertical-align: bottom">Work-in-process</td><td> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">291</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">350</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">TOTAL INVENTORIES</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,422</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,444</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt">NOTE 5 - COSTS AND ESTIMATED EARNINGS
ON UNCOMPLETED CONTRACTS</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt">  </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Information relating
to uncompleted contracts as of September 30, 2014 is as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"> </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: center; vertical-align: bottom"><font style="font-family: Arial, Helvetica, Sans-Serif">September
30, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-family: Arial, Helvetica, Sans-Serif">June
30, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; text-indent: -9pt; padding-left: 9pt">Costs incurred on uncompleted contracts</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,860</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,885</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt">Estimated earnings</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">2,039</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">1,746</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -9pt; padding-left: 9pt">Subtotal</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,899</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,631</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt">Less: Billings to date</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">3,421</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">3,013</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Total Costs and estimated earnings in excess of billings on uncompleted contracts</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">1,478</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">618</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Included in the accompanying
condensed consolidated balance sheets under the following captions:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-family: Arial, Helvetica, Sans-Serif">September
30, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-family: Arial, Helvetica, Sans-Serif">June
30, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; text-indent: -9pt; padding-left: 9pt">Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,620</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">760</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt">Less: Billings in excess of costs and estimated earnings on uncompleted contracts</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">142</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">142</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Total Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,478</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">618</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 6 – OTHER INTANGIBLE ASSETS</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other intangible assets, net of accumulated
amortization, in the accompanying condensed consolidated balance sheets consist of the following:</p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 75%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="text-align: center; vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">September 30, <br />2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">June 30, <br />2014</td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 63%; text-align: left; padding-left: 5.4pt">Capitalized software development costs</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">7,418</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">7,418</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">Patents and copyrights</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,454</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,408</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: left; vertical-align: top">Non-compete</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,100</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,100</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Customer relationships</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">3,800</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">3,800</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">Gross Other intangible assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,772</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,726</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Accumulated amortization</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">9,539</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">9,217</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Other Intangible Assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,233</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,509</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> Amortization of patents and copyrights
for the three months ended September 30, 2014 and 2013 amounted to $45 and $44, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of capitalized software development
costs for the three months ended September 30, 2014 and 2013 amounted to $83 and $109, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of non-compete for the three months
ended September 30, 2014 and 2013 amounted to $146 and $146, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of customer relationships for the
three months ended September 30, 2014 and 2013 amounted to $48 and $44, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 7 – OTHER CURRENT LIABILITIES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other current liabilities in the accompanying
condensed consolidated balance sheets consist of the following:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 75%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="text-align: center; vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">September 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">June 30,</p>
<p style="margin-top: 0; margin-bottom: 0">2014</p></td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 60%; text-align: left; text-indent: -9pt; padding-left: 9pt">Accrued salaries, commissions and payroll taxes</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,124</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">835</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Accrued interest</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Litigation accruals</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">627</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">664</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales tax payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,623</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,665</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Legal and other professional fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">442</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">439</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Accounting fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">127</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">325</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Self-funded health insurance reserve</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">354</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">306</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Interest and penalty - sales tax</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,420</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,374</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase scanners</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">785</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">450</td><td style="text-align: left"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; text-align: left; vertical-align: top">Other</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">623</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">849</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">TOTAL OTHER CURRENT LIABILITIES</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">9,242</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">9,024</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 8 – STOCKHOLDERS EQUITY</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">During the three months ended September 30, 2014, the Company issued
5 shares of common stock to employees and consultants as compensation valued at $53 under a stock bonus plan.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 9 - SEGMENT AND RELATED INFORMATION</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company operates in two industry segments
- manufacturing and the servicing of medical equipment and management of diagnostic imaging centers.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The accounting policies of the segments are
the same as those described in the summary of significant accounting policies as disclosed in the Company’s 10-K as of June
30, 2014. All inter-segment sales are market-based. The Company evaluates performance based on income or loss from operations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Summarized financial information concerning
the Company's reportable segments is shown in the following table:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </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="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Medical <br />Equipment</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Management <br />Of Diagnostic <br />Imaging <br />Centers</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Totals</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline; padding-left: 5.4pt">For the three months ended Sept. 30, 2014</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></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">Net revenues from external customers</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,790</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">14,195</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,985</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Inter-segment net revenues</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">501</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">501</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">378</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,060</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,438</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">76</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">812</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">888</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">46</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">72</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>For the three months ended Sept. 30, 2013</u></p></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></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Net revenues from external customers</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,568</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">14,263</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">16,831</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Inter-segment net revenues</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">495</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">495</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">162</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,891</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">4,053</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">108</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">874</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">982</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">47</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">182</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">229</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 10 – SUPPLEMENTAL CASH FLOW INFORMATION</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three months ended September 30,
2014 and September 30, 2013, the Company paid $159 and $189 for interest, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three months ended September 30,
2014 and September 30, 2013, the Company paid $40 and $120 for income taxes, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 11 – COMMITMENTS AND CONTINGENCIES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Litigation</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">There were no material changes in litigation
from that reported in our Form 10-K for the fiscal year ended June 30, 2014.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Other Matters</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company is also delinquent in filing sales
tax returns for certain states, for which the Company has transacted business. As of September 30, 2014, the Company has recorded
tax obligations of approximately $2,623 plus interest and penalties of approximately $2,420. The Company is in the process of determining
the regulatory requirements in order to become compliant.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company maintains a self-funded
health insurance program with a stop-loss umbrella policy with a third party insurer to limit the maximum potential liability
for individual claims to $100 per person and for a maximum potential claim liability based on member enrollment. With
respect to this program, the Company considers historical and projected medical utilization data when estimating its health
insurance program liability and related expense. As of September 30, 2014 and June 30, 2014, the Company had approximately
$354 and $306, respectively, in reserve for its self-funded health insurance programs. The reserves are included in
“Other current liabilities” in the consolidated balance sheets.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company regularly analyzes its reserves
for incurred but not reported claims, and for reported but not paid claims related to its reinsurance and self-funded insurance
programs. The Company believes its reserves are adequate. However, significant judgment is involved in assessing these reserves
such as assessing historical paid claims, average lags between the claims’ incurred date, reported dates and paid dates,
and the frequency and severity of claims. There may be differences between actual settlement amounts and recorded reserves and
any resulting adjustments are included in expense once a probable amount is known. There were no significant adjustments recorded
in the periods covered by this report.</p>
<p style="font: 10pt/normal Arial, Helvetica, Sans-Serif; margin: 0">NOTE 12 - INCOME TAXES</p>
<p style="font: 10pt/normal Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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 2009.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company recorded a deferred tax asset of $5,740
and a deferred tax liability of $584 as of September 30, 2014, primarily relating to net operating loss carryforwards of approximately
$137,252 available to offset future taxable income through 2034. The net operating losses begin to expire in 2019 for federal tax
purposes and in 2014 for state income tax purposes.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt/normal Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A valuation allowance will be maintained until
sufficient positive evidence exists to support the reversal of the remainder of the valuation. Should the Company continue to remain
profitable in future periods with supportable trends, the valuation allowance will be reversed accordingly.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 13 – SUBSEQUENT EVENTS</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">The Company has evaluated events that occurred subsequent to September
30, 2014 and through the date the condensed consolidated financial statements were issued.</p>
785000
450000
263000
386000
2892000
3859000
5186000
4450000
257000
257000
5443000
4707000
0.42
0.11
0.11
0.38
0.39
0.41