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<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><font style="font-size: 12pt">FONAR CORPORATION
AND SUBSIDIARIES</font></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Description of Business</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Effective July 1, 2015, the Company restructured the corporate organization
of the management of diagnostic imaging centers segment of our business. The reorganization was structured to more completely integrate
the operations of Health Management Corporation of America and HDM. Imperial contributed all of its assets (which were utilized
in the business of Health Management Corporation of America) to HDM and received a 24.2% interest in HDM. Health Management Corporation
of America retained a direct ownership interest of 45.8% in HDM, and the original investors in HDM retained a 30.0% ownership interest
in the newly expanded HDM. The entire management of diagnostic imaging centers business segment is now being conducted by HDM,
operating under the name “Health Management Company of America”.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Basis of Presentation</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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 and nine months ended March 31, 2016, are not necessarily indicative of the
results that may be expected for the fiscal year ending June 30, 2016. 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, 2015 for the fiscal
year ended June 30, 2015.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><font style="font-size: 12pt">FONAR CORPORATION
AND SUBSIDIARIES</font></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><u>Principles of Consolidation</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Earnings Per Share</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Basic earnings per share (“EPS”)
is computed based on weighted average number of shares common stock and stock equivalents outstanding, net of common stock. In
accordance with ASC topic 260-10, “Participating Securities and the Two-Class method”, the Company used the Two-Class
method for calculating basic earnings per share and applied the if converted method in calculating diluted earnings per share for
the three and nine months ended March 31, 2016 and March 31, 2015.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0">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 and nine months ended March 31, 2016 and March 31, 2015, diluted EPS for common shareholders
includes 128 shares upon conversion of Class C Common. </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0">  </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Three months ended <br />March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Three months ended <br />March 31, 2015</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"><u></u></td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Basic</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Numerator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; width: 33%; font-size: 11pt">Net income available to common stockholders</td><td style="width: 3%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,005</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,810</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">50</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,019</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1,888</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">33</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt"><u>Denominator:</u></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.50</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.46</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.13</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0"></p>
<p style="margin-top: 0; margin-bottom: 0">0.33</p></td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.09</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="font-size: 11pt"></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Diluted</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Denominator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Convertible Class C Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Total denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.45</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.13</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.09</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Nine months ended <br />March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Nine months ended <br />March 31, 2015</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"><u></u></td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Basic</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Numerator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; width: 33%; font-size: 11pt">Net income available to common stockholders</td><td style="width: 3%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">9,360</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,752</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">155</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">7,212</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,743</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">119</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt"><u>Denominator:</u></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.55</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.45</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.40</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.19</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.11</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="font-size: 11pt"></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Diluted</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Denominator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Convertible Class C Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Total denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.42</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.40</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.09</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements </u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In March 2016, the FASB issued ASU No. 2016-09,
“Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update
includes provisions intended to simplify various aspects of accounting for share-based compensation. ASU No. 2016-09 will take
effect for public companies for the annual periods beginning after December 15, 2016. The Company is currently assessing the potential
impact of ASU No. 2016-09 on the Company’s consolidated condensed financial statements.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In November 2015, the FASB issued ASU No. 2015-17,
Balance Sheet Classification of Deferred Taxes, which will require entities to present deferred tax assets and deferred tax liabilities
as non-current in a classified balance sheet. The ASU simplified the current guidance, which requires entities to separately present
deferred tax assets and deferred tax liabilities as current and non-current in a classified balance sheet. This standard is effective
for annual periods and interim periods within those fiscal years, beginning after December 15, 2016 but permits entities to early
adopt at the beginning of any interim or annual period. During the quarter ended December 31, 2015, the Company elected to early
adopt ASU 2015-17 and applied the change retrospectively to all periods present. As a result, the Company presented all deferred
assets and liabilities as non-current in its consolidated balance sheet. The adoption of this ASU did not result in a reclassification
of the Company’s net deferred tax assets and liabilities as of June 30, 2015. As of March 31, 2016, there was no impact on
the Company’s results of operations as a result of the adoption of ASU No. 2015-17</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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 for annual reporting
periods beginning after December 15, 2017, as deferred including interim periods within the reporting period 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 Company is currently evaluating the effect that this ASU will have on its
condensed consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has
it determined the effect of the standard on it ongoing financial reporting.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In July 2015, the FASB issued Accounting Standards
Update No. 2015-11, “<i>Simplifying the Measurement of Inventory</i>” (“ASU 2015-11”). ASU 2015-11 requires
an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices
in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement
is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. It is effective
for annual reporting periods beginning after December 15, 2016. The amendments should be applied prospectively with earlier application
permitted as of the beginning of an interim or annual reporting period.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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 March 31, 2016 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 2016 or 2015, and it does not believe that any of those pronouncements
will have a significant impact on our condensed consolidated financial statements at the time they become effective.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><u>Reclassifications</u></p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><u style="text-decoration: none"> </u></p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified to conform
to the current year presentation. The reclassifications did not have any effect on reported consolidated net income for any periods
presented.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">  </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT
AND OTHER FEES RECEIVABLE</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Receivables, net is comprised of the following
at March 31, 2016:</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Gross <br />Receivable</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Allowance for <br />doubtful accounts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Net</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Accounts receivable</td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,614</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">288</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,326</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Accounts receivable - related party</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">30</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">30</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Medical receivable</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">36,164</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">26,067</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">10,097</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Management and other fees receivable</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">28,873</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">12,972</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">15,901</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Management and other fees receivable - related medical practices ("PC’s")</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,462</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">403</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,059</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Receivables, net is comprised of the following
at June 30, 2015:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Gross <br />Receivable</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Allowance for <br />doubtful accounts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Net</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Accounts receivable</td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,153</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">362</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,791</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Accounts receivable - related party</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Medical receivable</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">24,541</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">15,459</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">9,082</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Management and other fees receivable</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">27,330</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">13,272</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">14,058</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Management and other fees receivable -  related medical practices ("PC’s")</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,910</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">403</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,507</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company's customers are concentrated in
the healthcare industry.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Accounts Receivable</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> <u>Medical Receivable</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Management and Other Fees Receivable</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><u></u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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 59% and 55% of the PCs’
net revenues for the three months ended March 31, 2016 and 2015, respectively, were derived from no-fault and personal injury protection
claims. Approximately 60% and 54% of the PCs’ net revenues for the nine months ended March 31, 2016 and 2015, 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net revenues from management and other fees
charged to the related PCs accounted for approximately 10.2% and 11% of the consolidated net revenues for the three months ended
March 31, 2016 and 2015, respectively. Net revenues from management and other fees charged to the related PCs accounted for approximately
10.3% and 10.6% of the consolidated net revenues for the nine months ended March 31, 2016 and 2015, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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 and nine months ended March 31, 2016 and
2015 are summarized in the following tables.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="text-align: center; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">For the Three Months Ended <br />March 31,</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 60%; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Commercial Insurance/ Managed Care</td><td style="width: 6%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">1,245</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">1,091</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Medicare/Medicaid</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">332</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">292</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Workers' Compensation/Personal Injury</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">5,453</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,513</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Other</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,665</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,388</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Patient Fee Revenue, net of contractual allowances and discounts</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">8,695</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">7,284</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Provision for Bad Debts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(3,830</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(3,201</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Net Patient Fee for Revenue</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,865</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,083</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="text-align: center; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">For the Nine Months Ended <br />March 31,</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 60%; text-align: left; padding-left: 0pt; font-size: 11pt">Commercial Insurance/ Managed Care</td><td style="width: 6%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">3,438</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">3,245</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-left: 0pt; font-size: 11pt">Medicare/Medicaid</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">874</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">896</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; font-size: 11pt">Workers' Compensation/Personal Injury</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">15,649</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">11,354</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-bottom: 1pt; font-size: 11pt">Other</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">4,635</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">5,205</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Patient Fee Revenue, net of contractual allowances and discounts</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">24,596</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">20,700</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; font-size: 11pt">Provision for Bad Debts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(10,608</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(9,244</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; font-size: 11pt">Net Patient Fee for Revenue</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">13,988</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">11,456</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 4 - INVENTORIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">Inventories included in the accompanying condensed consolidated balance
sheet consist of the following:</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="text-align: center; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">March 31, <br />2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">June 30, <br />2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; text-indent: -0.25in; padding-left: 0.25in; font-size: 11pt">Purchased parts, components and supplies</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">2,033</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">2,043</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; font-size: 11pt">Work-in-process</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">201</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">149</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; font-size: 11pt">Total Inventories</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,234</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,192</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">  </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 5 – COSTS AND ESTIMATED EARNINGS
ON UNCOMPLETED CONTRACTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">Information relating
to uncompleted contracts is as follows:</p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Costs incurred on uncompleted contracts</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">2,310</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">1,862</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Estimated earnings</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,622</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,371</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Subtotal</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">3,932</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">3,233</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Less: Billings to date</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">3,908</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">2,693</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Total Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">24</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">540</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">Included in the accompanying
condensed consolidated balance sheets under the following captions:</p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">279</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">682</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Less: Billings in excess of costs and estimated earnings on uncompleted contracts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">255</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">142</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Total Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">24</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">540</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">  </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 6 – OTHER INTANGIBLE ASSETS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other intangible assets, net of accumulated
amortization, in the accompanying condensed consolidated balance sheet consist of the following:</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center; font-size: 11pt">March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center; font-size: 11pt">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; padding-left: 8.85pt; font-size: 11pt">Capitalized software development costs</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">7,005</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">7,005</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 8.85pt; font-size: 11pt">Patents and copyrights</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,612</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,547</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="padding-left: 8.85pt; font-size: 11pt">Non-compete</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,100</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,100</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 8.85pt; font-size: 11pt">Customer relationships</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">3,800</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">3,800</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 8.85pt; font-size: 11pt">Gross Other intangible assets</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">19,517</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">19,452</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 8.85pt; font-size: 11pt">Less: Accumulated amortization</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">11,451</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">10,502</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 8.85pt; font-size: 11pt">Other Intangible Assets</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,066</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,950</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">   </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Amortization of patents
and copyrights for the three months ended March 31, 2016 and 2015 amounted to $47 and $46, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Amortization of capitalized
software development costs for the three months ended March 31, 2016 and 2015 amounted to $65 and $81, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Amortization of non-compete
for the three months ended March 31, 2016 and 2015 amounted to $146 and $146, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Amortization of customer
relationships for the three months ended March 31, 2016 and 2015 amounted to $47 and $47, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Amortization of patents
and copyrights for the nine months ended March 31, 2016 and 2015 amounted to $141 and $137, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Amortization of capitalized
software development costs for the nine months ended March 31, 2016 and 2015 amounted to $227 and $246, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Amortization of non-compete
for the nine months ended March 31, 2016 and 2015 amounted to $439 and $439, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">Amortization of customer
relationships for the nine months ended March 31, 2016 and 2015 amounted to $142 and $142, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> NOTE 7 – OTHER CURRENT LIABILITIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other current liabilities in the accompanying
condensed consolidated balance sheet consist of the following: </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; text-indent: -8.95pt; padding-left: 8.95pt; font-size: 11pt">Accrued salaries, commissions and payroll taxes</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">903</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">992</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Accrued interest</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">117</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">117</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Litigation accruals</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">493</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">521</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Sales tax payable</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">2,565</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">2,539</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Legal and other professional fees</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">307</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">344</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Accounting fees</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">193</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">235</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Self-funded health insurance reserve</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">434</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">510</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Interest and penalty - sales tax</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">2,644</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">2,509</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; font-size: 11pt">Other</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">982</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">486</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: right; padding-bottom: 2.5pt; padding-left: 5.4pt; font-size: 11pt">Total Other Current Liabilities</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,638</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,253</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 8 - SEGMENT AND RELATED INFORMATION</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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, 2015. All inter-segment sales are market-based. The Company evaluates performance based on income or loss from operations.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt"><p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Medical</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Equipment</p></td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt"><p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Management</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">of</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Diagnostic</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Imaging</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Centers</p></td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: center; font-size: 11pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Totals</font></td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-decoration: underline; padding-left: 5.4pt; font-size: 11pt">For the three months ended March 31, 2016</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 46%; text-align: left; padding-left: 5.4pt; font-size: 11pt">Net revenues from external customers</td><td style="width: 5%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">2,454</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 5%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">16,165</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 5%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">18,619</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Inter-segment net revenues</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">546</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">546</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">(Loss) income from operations</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">(207</td><td style="text-align: left; font-size: 11pt">)</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">4,304</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">4,097</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Depreciation and amortization</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">79</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">751</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">830</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Capital expenditures</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">31</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">117</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">148</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-left: 5.4pt; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-decoration: underline; padding-left: 5.4pt; font-size: 11pt">For the three months ended March 31, 2015</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Net revenues from external customers</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,486</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">14,610</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">17,096</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Inter-segment net revenues</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">502</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">502</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">(Loss) income from operations</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">(367</td><td style="text-align: left; font-size: 11pt">)</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">3,033</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,666</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Depreciation and amortization</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">78</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">811</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">889</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Capital expenditures</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">111</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">111</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-left: 5.4pt; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-decoration: underline; padding-left: 5.4pt; font-size: 11pt">For the nine months ended March 31, 2016</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Net revenues from external customers</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">7,833</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">46,766</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">54,599</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Inter-segment net revenues</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">1,594</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">1,594</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Income from operations</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">18</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">11,919</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">11,937</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Depreciation and amortization</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">242</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,265</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,507</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Capital expenditures</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">390</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">209</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">599</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-left: 5.4pt; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-decoration: underline; padding-left: 5.4pt; font-size: 11pt">For the nine months ended March 31, 2015</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Net revenues from external customers</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">9,177</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">42,996</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">52,173</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Inter-segment net revenues</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">1,504</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">1,504</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Income from operations</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">457</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">9,246</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">9,703</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Depreciation and amortization</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">229</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,436</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,665</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Capital expenditures</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">178</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">55</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">233</td><td style="text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 9– SUPPLEMENTAL CASH FLOW INFORMATION</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the nine months ended March 31, 2016
and March 31, 2015, the Company paid $280 and $406 for interest, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the nine months ended March 31, 2016
and March 31, 2015, the Company paid $235 and $99 for income taxes, respectively.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">NOTE 10 – COMMITMENTS AND CONTINGENCIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt/normal 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, 2015 with the exception of the case with Dr. Shapiro. The
case was settled for $258,400 plus interest on February 18. 2016.</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"><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 March 31, 2016, the Company has recorded tax
obligations of approximately $2,565 plus interest and penalties of approximately $2,644. 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 March 31, 2016 and June 30, 2015, the Company had approximately $434 and $510, respectively, in reserve for its
self-funded health insurance programs. The reserves are included in “Other current liabilities” in the condensed 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 Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In March 2016, the Company signed a 2nd amendment
with Signature Bank to extend the terms of the revolving loan to September 2018. As of March 31, 2016, the Company has not been
advanced any money under this revolving loan. </p>
<p style="margin: 0pt"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">NOTE 11 - INCOME TAXES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company recorded a deferred tax asset of
$8,423 and a deferred tax liability of $510 as of March 31, 2016, primarily relating to net operating loss carryforwards of approximately
$122,926 available to offset future taxable income through 2034. The net operating losses begin to expire in 2019 for federal tax
purposes and in 2015 for state income tax purposes.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0pt">  </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">MARCH 31, 2016 and 2015</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Amounts and shares in thousands,
except per share amounts)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 12- SUBSEQUENT EVENTS</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On May 2, 2016, the Company repaid the balance
of the Class A Stockholders capital contribution in the amount of $1,125. As a result, the Company’s subsidiary, HMCA, owns
a 100% interest in Imperial Management Services.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><u>Principles of Consolidation</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts and shares in
thousands, except per share amounts) (UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Earnings Per Share</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Basic earnings per share (“EPS”)
is computed based on weighted average number of shares common stock and stock equivalents outstanding, net of common stock. In
accordance with ASC topic 260-10, “Participating Securities and the Two-Class method”, the Company used the Two-Class
method for calculating basic earnings per share and applied the if converted method in calculating diluted earnings per share for
the three and nine months ended March 31, 2016 and March 31, 2015.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">  </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0">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 and nine months ended March 31, 2016 and March 31, 2015, diluted EPS for common shareholders
includes 128 shares upon conversion of Class C Common. </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0">  </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Three months ended <br />March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Three months ended <br />March 31, 2015</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"><u></u></td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Basic</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Numerator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; width: 33%; font-size: 11pt">Net income available to common stockholders</td><td style="width: 3%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,005</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,810</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">50</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,019</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1,888</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">33</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt"><u>Denominator:</u></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.50</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.46</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.13</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0"></p>
<p style="margin-top: 0; margin-bottom: 0">0.33</p></td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.09</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="font-size: 11pt"></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Diluted</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Denominator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Convertible Class C Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Total denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.45</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.13</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.09</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Nine months ended <br />March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Nine months ended <br />March 31, 2015</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"><u></u></td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Basic</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Numerator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; width: 33%; font-size: 11pt">Net income available to common stockholders</td><td style="width: 3%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">9,360</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,752</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">155</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">7,212</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,743</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">119</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt"><u>Denominator:</u></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.55</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.45</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.40</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.19</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.11</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="font-size: 11pt"></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Diluted</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Denominator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Convertible Class C Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Total denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.42</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.40</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.09</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements </u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In March 2016, the FASB issued ASU No. 2016-09,
“Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update
includes provisions intended to simplify various aspects of accounting for share-based compensation. ASU No. 2016-09 will take
effect for public companies for the annual periods beginning after December 15, 2016. The Company is currently assessing the potential
impact of ASU No. 2016-09 on the Company’s consolidated condensed financial statements.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In November 2015, the FASB issued ASU No. 2015-17,
Balance Sheet Classification of Deferred Taxes, which will require entities to present deferred tax assets and deferred tax liabilities
as non-current in a classified balance sheet. The ASU simplified the current guidance, which requires entities to separately present
deferred tax assets and deferred tax liabilities as current and non-current in a classified balance sheet. This standard is effective
for annual periods and interim periods within those fiscal years, beginning after December 15, 2016 but permits entities to early
adopt at the beginning of any interim or annual period. During the quarter ended December 31, 2015, the Company elected to early
adopt ASU 2015-17 and applied the change retrospectively to all periods present. As a result, the Company presented all deferred
assets and liabilities as non-current in its consolidated balance sheet. The adoption of this ASU did not result in a reclassification
of the Company’s net deferred tax assets and liabilities as of June 30, 2015. As of March 31, 2016, there was no impact on
the Company’s results of operations as a result of the adoption of ASU No. 2015-17</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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 for annual reporting
periods beginning after December 15, 2017, as deferred including interim periods within the reporting period 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 Company is currently evaluating the effect that this ASU will have on its
condensed consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has
it determined the effect of the standard on it ongoing financial reporting.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In July 2015, the FASB issued Accounting Standards
Update No. 2015-11, “<i>Simplifying the Measurement of Inventory</i>” (“ASU 2015-11”). ASU 2015-11 requires
an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices
in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement
is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. It is effective
for annual reporting periods beginning after December 15, 2016. The amendments should be applied prospectively with earlier application
permitted as of the beginning of an interim or annual reporting period.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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 March 31, 2016 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 2016 or 2015, and it does not believe that any of those pronouncements
will have a significant impact on our condensed consolidated financial statements at the time they become effective.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u style="text-decoration: none"></u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><u>Reclassifications</u></p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><u style="text-decoration: none"> </u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified
to conform to the current year presentation. The reclassifications did not have any effect on reported consolidated net income
for any periods presented.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts and shares in thousands,
except per share amounts) (UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Earnings Per Share</u></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">   </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Three months ended <br />March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Three months ended <br />March 31, 2015</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"><u></u></td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Basic</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Numerator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; width: 33%; font-size: 11pt">Net income available to common stockholders</td><td style="width: 3%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,005</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,810</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">50</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,019</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1,888</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">33</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt"><u>Denominator:</u></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.50</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.46</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.13</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0"></p>
<p style="margin-top: 0; margin-bottom: 0">0.33</p></td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.09</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="font-size: 11pt"></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Diluted</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Denominator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Convertible Class C Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Total denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.45</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.13</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.09</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Nine months ended <br />March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Nine months ended <br />March 31, 2015</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"><u></u></td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Total</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Common Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Class C Common Stock</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Basic</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Numerator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; width: 33%; font-size: 11pt">Net income available to common stockholders</td><td style="width: 3%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">9,360</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,752</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">155</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">7,212</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,743</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 2%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 7%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">119</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt"><u>Denominator:</u></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.55</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.45</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.40</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.19</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.11</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="font-size: 11pt"></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="font-size: 11pt"><p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Diluted</u></p>
<p style="margin-top: 0; margin-bottom: 0; font-size: 11pt"><u>Denominator:</u></p></td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted average shares outstanding</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">6,050</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">383</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Convertible Class C Stock</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">128</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Total denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.42</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.40</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.09</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts in thousands)
(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Receivables, net is comprised of the following
at March 31, 2016:</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Gross <br />Receivable</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Allowance for <br />doubtful accounts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Net</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Accounts receivable</td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,614</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">288</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,326</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Accounts receivable - related party</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">30</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">30</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Medical receivable</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">36,164</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">26,067</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">10,097</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Management and other fees receivable</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">28,873</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">12,972</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">15,901</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Management and other fees receivable - related medical practices ("PC’s")</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,462</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">403</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,059</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Receivables, net is comprised of the following
at June 30, 2015:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Gross <br />Receivable</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Allowance for <br />doubtful accounts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">Net</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Accounts receivable</td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,153</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">362</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="width: 5%; padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,791</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Accounts receivable - related party</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">—  </td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Medical receivable</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">24,541</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">15,459</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">9,082</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Management and other fees receivable</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">27,330</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">13,272</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">14,058</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 12.6pt; font-size: 11pt">Management and other fees receivable -  related medical practices ("PC’s")</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,910</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">403</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,507</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts in thousands) (UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt 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 and nine months ended March 31, 2016 and
2015 are summarized in the following tables.</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="text-align: center; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">For the Three Months Ended <br />March 31,</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 60%; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Commercial Insurance/ Managed Care</td><td style="width: 6%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">1,245</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">1,091</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Medicare/Medicaid</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">332</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">292</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Workers' Compensation/Personal Injury</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">5,453</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,513</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Other</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,665</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,388</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Patient Fee Revenue, net of contractual allowances and discounts</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">8,695</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">7,284</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Provision for Bad Debts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(3,830</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(3,201</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Net Patient Fee for Revenue</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,865</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">4,083</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="text-align: center; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">For the Nine Months Ended <br />March 31,</td></tr>
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 60%; text-align: left; padding-left: 0pt; font-size: 11pt">Commercial Insurance/ Managed Care</td><td style="width: 6%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">3,438</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">3,245</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-left: 0pt; font-size: 11pt">Medicare/Medicaid</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">874</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">896</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; font-size: 11pt">Workers' Compensation/Personal Injury</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">15,649</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">11,354</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-bottom: 1pt; font-size: 11pt">Other</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">4,635</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">5,205</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt; font-size: 11pt">Patient Fee Revenue, net of contractual allowances and discounts</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">24,596</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">20,700</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; font-size: 11pt">Provision for Bad Debts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(10,608</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(9,244</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; font-size: 11pt">Net Patient Fee for Revenue</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">13,988</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">11,456</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts in thousands) (UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">Inventories included in the accompanying condensed consolidated balance
sheet consist of the following:</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="text-align: center; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">March 31, <br />2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">June 30, <br />2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; text-indent: -0.25in; padding-left: 0.25in; font-size: 11pt">Purchased parts, components and supplies</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">2,033</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">2,043</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; font-size: 11pt">Work-in-process</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">201</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">149</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; font-size: 11pt">Total Inventories</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,234</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,192</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">  </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts in thousands)
(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">  </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">Information relating
to uncompleted contracts is as follows:</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Costs incurred on uncompleted contracts</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">2,310</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">1,862</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Estimated earnings</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,622</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,371</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Subtotal</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">3,932</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">3,233</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Less: Billings to date</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">3,908</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">2,693</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Total Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">24</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">540</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts in thousands) (UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> Included in
the accompanying condensed consolidated balance sheets under the following captions:</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">279</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">682</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Less: Billings in excess of costs and estimated earnings on uncompleted contracts</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">255</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">142</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt; font-size: 11pt">Total Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">24</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">540</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts in thousands)
(UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other intangible assets, net of accumulated
amortization, in the accompanying condensed consolidated balance sheet consist of the following:</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center; font-size: 11pt">March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center; font-size: 11pt">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; padding-left: 8.85pt; font-size: 11pt">Capitalized software development costs</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">7,005</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">7,005</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 8.85pt; font-size: 11pt">Patents and copyrights</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,612</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,547</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="padding-left: 8.85pt; font-size: 11pt">Non-compete</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,100</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">4,100</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 8.85pt; font-size: 11pt">Customer relationships</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">3,800</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">3,800</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 8.85pt; font-size: 11pt">Gross Other intangible assets</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">19,517</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">19,452</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 8.85pt; font-size: 11pt">Less: Accumulated amortization</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">11,451</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">10,502</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 8.85pt; font-size: 11pt">Other Intangible Assets</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,066</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,950</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts in thousands) (UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other current liabilities in the accompanying
condensed consolidated balance sheet consist of the following: </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; font-size: 11pt">
<td style="text-align: right; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">March 31, 2016</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 56%; text-align: left; text-indent: -8.95pt; padding-left: 8.95pt; font-size: 11pt">Accrued salaries, commissions and payroll taxes</td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">903</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 8%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 12%; text-align: right; font-size: 11pt">992</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Accrued interest</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">117</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">117</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Litigation accruals</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">493</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">521</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Sales tax payable</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">2,565</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">2,539</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Legal and other professional fees</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">307</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">344</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Accounting fees</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">193</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">235</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Self-funded health insurance reserve</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">434</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">510</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Interest and penalty - sales tax</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">2,644</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt">2,509</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; font-size: 11pt">Other</td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">982</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">486</td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: right; padding-bottom: 2.5pt; padding-left: 5.4pt; font-size: 11pt">Total Other Current Liabilities</td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,638</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 2.5pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,253</td><td style="padding-bottom: 2.5pt; text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0">    </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: left">(Amounts in
thousands) (UNAUDITED)</p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 11pt 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: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt"><p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Medical</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Equipment</p></td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt"><p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Management</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">of</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Diagnostic</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Imaging</p> <p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">Centers</p></td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"> </td><td style="padding-bottom: 1pt; font-size: 11pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt"> </td><td style="border-bottom: Black 1pt solid; text-align: center; font-size: 11pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Totals</font></td><td style="padding-bottom: 1pt; text-align: left; font-size: 11pt"></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-decoration: underline; padding-left: 5.4pt; font-size: 11pt">For the three months ended March 31, 2016</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="width: 46%; text-align: left; padding-left: 5.4pt; font-size: 11pt">Net revenues from external customers</td><td style="width: 5%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">2,454</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 5%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">16,165</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td><td style="width: 5%; font-size: 11pt"> </td>
<td style="width: 1%; text-align: left; font-size: 11pt">$</td><td style="width: 11%; text-align: right; font-size: 11pt">18,619</td><td style="width: 1%; text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Inter-segment net revenues</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">546</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">546</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">(Loss) income from operations</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">(207</td><td style="text-align: left; font-size: 11pt">)</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">4,304</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">4,097</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Depreciation and amortization</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">79</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">751</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">830</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Capital expenditures</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">31</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">117</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">148</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-left: 5.4pt; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-decoration: underline; padding-left: 5.4pt; font-size: 11pt">For the three months ended March 31, 2015</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Net revenues from external customers</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,486</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">14,610</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">17,096</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Inter-segment net revenues</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">502</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">502</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">(Loss) income from operations</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">(367</td><td style="text-align: left; font-size: 11pt">)</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">3,033</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,666</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Depreciation and amortization</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">78</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">811</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">889</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Capital expenditures</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">111</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">111</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-left: 5.4pt; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-decoration: underline; padding-left: 5.4pt; font-size: 11pt">For the nine months ended March 31, 2016</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Net revenues from external customers</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">7,833</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">46,766</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">54,599</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Inter-segment net revenues</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">1,594</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">1,594</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Income from operations</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">18</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">11,919</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">11,937</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Depreciation and amortization</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">242</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,265</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,507</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Capital expenditures</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">390</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">209</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">599</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="padding-left: 5.4pt; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-decoration: underline; padding-left: 5.4pt; font-size: 11pt">For the nine months ended March 31, 2015</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt"> </td><td style="text-align: right; font-size: 11pt"> </td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Net revenues from external customers</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">9,177</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">42,996</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">52,173</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Inter-segment net revenues</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">1,504</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">—  </td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">1,504</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Income from operations</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">457</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">9,246</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">9,703</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Depreciation and amortization</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">229</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,436</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">2,665</td><td style="text-align: left; font-size: 11pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
<td style="text-align: left; padding-left: 5.4pt; font-size: 11pt">Capital expenditures</td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">178</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">55</td><td style="text-align: left; font-size: 11pt"> </td><td style="font-size: 11pt"> </td>
<td style="text-align: left; font-size: 11pt">$</td><td style="text-align: right; font-size: 11pt">233</td><td style="text-align: left; font-size: 11pt"> </td></tr>
</table>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
403000
79000
112000
117000
117000
1.00
1125000
4097000
2666000
11937000
9703000
-127000
-169000
-416000
-545000
1000
-2000
-4971000
4865000
4083000
13988000
11456000