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<p style="font: 14pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">  </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Description
of Business</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u> </u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">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”.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Basis
of Presentation</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u> </u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by accounting principles generally accepted in the United States
of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating results for the three months ended September 30, 2016,
are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2017. 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 28, 2016 for the fiscal year ended June 30, 2016.</font></p>
<p style="font: 14pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></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"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Principles
of Consolidation</u></font></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"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Earnings
Per Share</u></font></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"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic
earnings per share (“EPS”) is computed based upon the weighted average number of shares of common stock and stock
equivalents outstanding, net of common stock. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class
method”, the Company used the Two-Class method for calculating basic income per share and applied the if converted method
in calculating diluted income per share for the three months ended September 30, 2016 and 2015.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Diluted
EPS reflects the potential dilution from the exercise or conversion of all dilutive securities into common stock based on the
average market price of common shares outstanding during the period. For the three months ended September 30, 2016 and 2015, diluted
EPS for common shareholders includes 128 shares upon conversion of Class C Common.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Three
months ended <br />September 30, 2016</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Three
months ended <br />September 30, 2015</font></td></tr>
<tr style="vertical-align: bottom">
<td></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Class
C Common </font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Stock</font></p></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Class
C Common </font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Stock</font></p></td></tr>
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<td style="width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Numerator:</u> </font></p>
<p style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
income available to common stockholders</font></p></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,571</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,343</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">58</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,862</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,676</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">47</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Denominator:</u></font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,105</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,105</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,050</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,050</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic
income per common share</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.58</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.55</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.15</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.47</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.44</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.12</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Diluted</u></font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Denominator:</u></font></p>
<p style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></p></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,105</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,050</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Convertible
Class C Stock</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">128</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">128</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total
Denominator for diluted earnings per share</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,233</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,178</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Diluted
income per common share</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.54</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.15</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.43</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.12</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Recent
Accounting Pronouncements</u></font></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"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">During
February 2016, FAS issued ASU 2016-02, Leases (Topic 842). The new standard requires lessees to apply a dual approach, classifying
leases as either finance or operating leases based upon the principle of whether or not the lease is effectively a financed purchase
by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or
on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability
for all leases with a term of greater than 12 months regardless of their classification. Lease with a term of 12 months or less
will be accounted for similar to existing guidance for operating leases. The new guidance will be effective for annual reporting
periods beginning after December 15, 2018, including interim periods within that reporting period and is applied retrospectively.
Early adoption is permitted. The Company is currently in the process of assessing the impact the adoption of this guidance will
have on the Company’s consolidated condensed financial statements.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. 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, 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 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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">In
July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FASB,
the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of September
30, 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 consolidated financial statements at
the time they become effective.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Reclassifications</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Certain
prior year amounts have been reclassified to conform to the current year presentation. The reclassifications did not have any
effect on reported consolidated net income for any periods presented.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Accounts
Receivable, Medical Receivable and Management and Other Fees Receivable</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Receivables,
net is comprised of the following September 30, 2016, and June 30, 2016:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Gross
Receivable</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Allowance
for doubtful accounts</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounts
receivable</font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,888</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">284</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,604</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounts
receivable - related party</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">90</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">90</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Medical
receivable</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">28,752</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">18,205</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">10,547</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
and other fees receivable</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">29,469</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">12,909</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">16,560</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
and other fees receivable from related medical practices ("PC’s")</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,625</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">393</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,232</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Gross
Receivable</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Allowance
for doubtful accounts</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounts
receivable</font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,654</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">284</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,370</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounts
receivable - related party</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Medical
receivable</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">27,579</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">17,452</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">10,127</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
and other fees receivable</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">29,584</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">13,946</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">15,638</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
and other fees receivable from related medical practices ("PC’s")</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,457</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">393</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,064</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
Company's customers are concentrated in the healthcare industry.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Accounts
Receivable</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Credit
risk with respect to the Company’s accounts receivable related to product sales and service and repair fees is limited due
to the customer advances received prior to the commencement of work performed and the billing of amounts to customers as sub-assemblies
are completed. Service and repair fees are billed on a monthly or quarterly basis and the Company does not continue providing
these services if accounts receivable become past due. The Company controls credit risk with respect to accounts receivable from
service and repair fees through its credit evaluation process, credit limits, monitoring procedures and reasonably short collection
terms. The Company performs ongoing credit authorizations before a product sales contract is entered into or service and repair
fees are provided.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Medical
Receivables</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Medical
receivables are due under fee-for-service contracts from third party payors, such as hospitals, government sponsored healthcare
programs, patient’s legal counsel and directly from patients. Substantially all the revenue relates to patients residing
in Florida. The carrying amount of the medical receivable is reduced by an allowance that reflects management’s best estimate
of the amounts that will not be collected. The Company continuously monitors collections from its clients and maintains an allowance
for bad debts based upon the Company’s historical collection experience. The Company determines allowances for contractual
adjustments and uncollectible accounts based on specific agings, specific payor collection issues that have been identified and
based on payor classifications and historical experience at each site.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Management
and Other Fees Receivable</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Payment
of the management fee receivables from the PC’s may be impaired by the inability of the PC’s to collect in a timely
manner their medical fees from the third party payors, particularly insurance carriers covering automobile no-fault and workers
compensation claims due to longer payment cycles and rigorous informational requirements and certain other disallowed claims.
Approximately 64% and 60% of the PCs’ net revenues for the three months ended September 30, 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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
revenues from management and other fees charged to the related PCs accounted for approximately 10.2% and 10.5% of the consolidated
net revenues for the three months ended September 30, 2016 and 2015, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Tallahassee
Magnetic Resonance Imaging, PA, Stand Up MRI of Boca Raton, PA and Stand Up MRI & Diagnostic Center, PA (all related medical
practices) entered into a guaranty agreement, pursuant to which they cross guaranteed all management fees which are payable to
the Company, which have arisen under each individual management agreement.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
Company’s patient fee revenue, net of contractual allowances and discounts less the provision for bad debts for the three
months ended September 30, 2016 and 2015 are summarized in the following table.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">For
the Three Months Ended September 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2016</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2015</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 65%; text-align: left; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Commercial
Insurance/ Managed Care</font></td><td style="width: 6%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,264</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 3%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,071</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Medicare/Medicaid</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">300</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">275</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Workers'
Compensation/Personal Injury</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">5,680</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">5,308</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,579</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,460</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Patient
Fee Revenue, net of contractual allowances and discounts</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">8,823</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">8,114</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Provision
for Bad Debts</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(3,878</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(3,507</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Patient Fee for Revenue</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,945</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,607</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
4 - INVENTORIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Inventories
included in the accompanying condensed consolidated balance sheets consist of the following:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 58%; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Purchased
parts, components and supplies</font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,984</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,862</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Work-in-process</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">230</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">212</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">TOTAL
INVENTORIES</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,214</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,074</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
5 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Information
relating to uncompleted contracts is as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 58%; text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Costs
incurred on uncompleted contracts</font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">837</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">894</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Estimated
earnings</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">480</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">491</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Subtotal</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,317</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,385</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Less:
Billings to date</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,493</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,592</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total
Costs and estimated earnings in excess of billings on uncompleted contracts</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(176</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(207</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Included
in the accompanying condensed consolidated balance sheets under the following captions:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 58%; text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Costs
and estimated earnings in excess of billings on uncompleted contracts</font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Less:
Billings in excess of costs and estimated earnings on uncompleted contracts</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(176</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(207</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total
Costs and estimated earnings in excess of billings on uncompleted contracts</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(176</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(207</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
6 – OTHER INTANGIBLE ASSETS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other
intangible assets, net of accumulated amortization, in the accompanying condensed consolidated balance sheets consist of the following:</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 54%; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Capitalized
software development costs</font></td><td style="width: 6%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 16%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">7,005</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 16%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">7,005</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Patents
and copyrights</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,614</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,571</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Non-compete</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,100</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,100</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Customer
relationships</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,800</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,800</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Gross
Other intangible assets</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">19,519</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">19,476</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Less:
Accumulated amortization</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">12,063</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">11,757</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other
Intangible Assets</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">7,456</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">7,719</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Amortization
of patents and copyrights for the three months ended September 30, 2016 and 2015 amounted to $47 and $47, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Amortization
of capitalized software development costs for the three months ended September 30, 2016 and 2015 amounted to $65 and $81, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Amortization
of non-compete for the three months ended September 30, 2016 and 2015 amounted to $146 and $146, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Amortization
of customer relationships for the three months ended September 30, 2016 and 2015 amounted to $48 and $48, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
7 – OTHER CURRENT LIABILITIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other
current liabilities in the accompanying condensed consolidated balance sheets consist of the following:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 58%; text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accrued
salaries, commissions and payroll taxes</font></td><td style="width: 2%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 17%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">860</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,189</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accrued
interest</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">45</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">45</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Litigation
accruals</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">545</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">545</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Sales
tax payable</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,387</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,403</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Legal
and other professional fees</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">370</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">385</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounting
fees</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">123</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">241</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Self-funded
health insurance reserve</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">9</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">392</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Interest
and penalty - sales tax</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,517</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,487</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,413</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,140</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other
Current Liabilities</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">8,269</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">10,827</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
10 - SEGMENT AND RELATED INFORMATION</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
Company operates in two industry segments - manufacturing and the servicing of medical equipment and management of diagnostic
imaging centers.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">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, 2016. All inter-segment sales are market-based. The Company evaluates performance based
on income or loss from operations.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Summarized
financial information concerning the Company's reportable segments is shown in the following table:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Medical
<br />Equipment</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
<br />Of Diagnostic <br />Imaging <br />Centers</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Totals</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">For
the three months ended Sept. 30, 2016</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
revenues from external customers</font></td><td style="width: 5%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,621</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">16,113</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">18,734</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Inter-segment
net revenues</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">381</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">381</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Loss)
Income from operations</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(147</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,900</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,753</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">80</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">776</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">856</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Capital
expenditures</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">43</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">599</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">642</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>For
the three months ended Sept. 30, 2015</u></font></p></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
revenues from external customers</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,330</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">15,281</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">17,611</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Inter-segment
net revenues</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">524</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">524</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Loss)
Income from operations</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(63</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,678</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,615</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">78</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">751</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">829</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Capital
expenditures</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">19</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">45</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">64</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
11 – SUPPLEMENTAL CASH FLOW INFORMATION</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">During
the three months ended September 30, 2016 and September 30, 2015, the Company paid $67 and $102 for interest, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">During
the three months ended September 30, 2016 and September 30, 2015, the Company paid $200 and $50 for income taxes, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED) </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
12 – COMMITMENTS AND CONTINGENCIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Litigation</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
Company is subject to legal proceedings and claims arising from the ordinary course of its business, including personal injury,
customer contract and employment claims. In the opinion of management, the aggregate liability, if any, with respect to such actions,
will not have a material adverse effect on the consolidated financial position or results of operations of the Company.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">There
were no material changes in litigation from that reported in our Form 10-K for the fiscal year ended June 30, 2016.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Other
Matters</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
Company is also delinquent in filing sales tax returns for certain states, for which the Company has transacted business. As of
September 30, 2016, the Company has recorded tax obligations of approximately $2,387 plus interest and penalties of approximately
$2,517. The Company is in the process of determining the regulatory requirements in order to become compliant.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
Company maintains a self-funded health insurance program with a stop-loss umbrella policy with a third party insurer to limit
the maximum potential liability for individual claims to $100 per person and for a maximum potential claim liability based on
member enrollment. With respect to this program, the Company considers historical and projected medical utilization data when
estimating its health insurance program liability and related expense. As of September 30, 2016 and June 30, 2016, the Company
had approximately $9 and $392, respectively, in reserve for its self-funded health insurance programs. The reserves are included
in “Other current liabilities” in the condensed consolidated balance sheets.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
13 - INCOME TAXES</font></p>
<p style="font: 10pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">ASC
topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement
of tax positions taken or expected to be taken in a corporate tax return. For those benefits to be recognized, a tax position
must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or
expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as
unrecognized benefits. A liability is recognized (or amount of net operating loss carryforward or amount of tax refundable is
reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing
authority for a tax position that was not recognized as a result of applying the provisions of ASC topic 740.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">In
accordance with ASC topic 740, interest costs related to unrecognized tax benefits are required to be calculated (if applicable)
and would be classified as “Interest expense, net”. Penalties if incurred would be recognized as a component of “Selling,
general and administrative” expenses.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
Company files corporate income tax returns in the United States (federal) and in various state and local jurisdictions. In most
instances, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years prior
to 2010.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
Company has recorded a deferred tax asset of $13,042 and a deferred tax liability of $482 as of September 30, 2016, primarily
relating to net operating loss carryforwards of approximately $110,029 available to offset future taxable income through 2031.
The net operating losses begin to expire in 2021 for federal tax purposes and in 2016 for state income tax purposes.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which
those temporary differences become deductible. The Company considers projected future taxable income and tax planning strategies
in making this assessment. At present, the Company believes that it is more likely than not that the benefits from certain NOL
carryforwards will not be fully realized. In recognition of this inherent risk, a valuation allowance was established for the
partial value of the deferred tax asset.</font></p>
<p style="font: 10pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">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.</font> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
14 – SUBSEQUENT EVENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
Company has evaluated events that occurred subsequent to September 30, 2016 and through the date the condensed consolidated financial
statements were issued.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Principles
of Consolidation</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><br /></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u></u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u></u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u></u></font>The
unaudited condensed consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned
subsidiaries and partnerships (collectively the “Company”). All significant intercompany accounts and transactions
have been eliminated in consolidation.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Earnings
Per Share</u></font></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"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic
earnings per share (“EPS”) is computed based upon the weighted average number of shares of common stock and stock
equivalents outstanding, net of common stock. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class
method”, the Company used the Two-Class method for calculating basic income per share and applied the if converted method
in calculating diluted income per share for the three months ended September 30, 2016 and 2015.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Diluted
EPS reflects the potential dilution from the exercise or conversion of all dilutive securities into common stock based on the
average market price of common shares outstanding during the period. For the three months ended September 30, 2016 and 2015, diluted
EPS for common shareholders includes 128 shares upon conversion of Class C Common.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Three
months ended <br />September 30, 2016</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Three
months ended <br />September 30, 2015</font></td></tr>
<tr style="vertical-align: bottom">
<td></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Class
C Common </font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Stock</font></p></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Class
C Common </font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Stock</font></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Basic</u></font></td>
<td style="width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Numerator:</u> </font></p>
<p style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
income available to common stockholders</font></p></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,571</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,343</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">58</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,862</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,676</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">47</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Denominator:</u></font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,105</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,105</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,050</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,050</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic
income per common share</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.58</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.55</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.15</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.47</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.44</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.12</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Diluted</u></font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Denominator:</u></font></p>
<p style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></p></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,105</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,050</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Convertible
Class C Stock</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">128</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">128</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total
Denominator for diluted earnings per share</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,233</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,178</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Diluted
income per common share</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.54</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.15</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.43</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.12</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Recent
Accounting Pronouncements</u></font></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"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">During
February 2016, FAS issued ASU 2016-02, Leases (Topic 842). The new standard requires lessees to apply a dual approach, classifying
leases as either finance or operating leases based upon the principle of whether or not the lease is effectively a financed purchase
by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or
on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability
for all leases with a term of greater than 12 months regardless of their classification. Lease with a term of 12 months or less
will be accounted for similar to existing guidance for operating leases. The new guidance will be effective for annual reporting
periods beginning after December 15, 2018, including interim periods within that reporting period and is applied retrospectively.
Early adoption is permitted. The Company is currently in the process of assessing the impact the adoption of this guidance will
have on the Company’s consolidated condensed financial statements.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. 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, 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 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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">In
July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FASB,
the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of September
30, 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 consolidated financial statements at
the time they become effective.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Reclassifications</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Certain
prior year amounts have been reclassified to conform to the current year presentation. The reclassifications did not have any
effect on reported consolidated net income for any periods presented.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Three
months ended </font><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><br /><font style="font-weight: normal; font-style: normal">September
30, 2016</font></font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Three
months ended </font><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><br /><font style="font-weight: normal; font-style: normal">September
30, 2015</font></font></td></tr>
<tr style="vertical-align: bottom">
<td></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Class
C Common </font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Stock</font></p></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Common
Stock</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Class
C Common </font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Stock</font></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 25%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic</font></td>
<td style="width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left; width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Numerator: </font></p>
<p style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
income available to common stockholders</font></p></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,571</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,343</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">58</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,862</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,676</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 2pt double"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">47</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Denominator:</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,105</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,105</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,050</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,050</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic
income per common share</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.58</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.55</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.15</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.47</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.44</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.12</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Diluted</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Denominator:</font></p>
<p style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
average shares outstanding</font></p></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,105</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,050</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Convertible
Class C Stock</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">128</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">128</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total
Denominator for diluted earnings per share</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,233</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,178</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Diluted
income per common share</font></td>
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.54</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.15</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.43</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.12</font></td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Gross
Receivable</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Allowance
for doubtful accounts</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounts
receivable</font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,888</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">284</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,604</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounts
receivable - related party</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">90</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">90</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Medical
receivable</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">28,752</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">18,205</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">10,547</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
and other fees receivable</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">29,469</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">12,909</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">16,560</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
and other fees receivable from related medical practices ("PC’s")</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,625</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">393</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,232</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Gross
Receivable</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Allowance
for doubtful accounts</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounts
receivable</font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,654</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">284</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,370</font></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounts
receivable - related party</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Medical
receivable</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">27,579</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">17,452</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">10,127</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
and other fees receivable</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">29,584</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">13,946</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">15,638</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -17.1pt; padding-left: 17.1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
and other fees receivable from related medical practices ("PC’s")</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,457</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">393</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,064</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">For
the Three Months Ended</font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30,</font></p></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2016</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2015</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 65%; text-align: left; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Commercial
Insurance/ Managed Care</font></td><td style="width: 6%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,264</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 3%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,071</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Medicare/Medicaid</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">300</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">275</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Workers'
Compensation/Personal Injury</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">5,680</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">5,308</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,579</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,460</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Patient
Fee Revenue, net of contractual allowances and discounts</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">8,823</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">8,114</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Provision
for Bad Debts</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(3,878</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(3,507</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -12.6pt; padding-left: 12.6pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Patient Fee for Revenue</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,945</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,607</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 58%; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Purchased
parts, components and supplies</font></td><td style="width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 18%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,984</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,862</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Work-in-process</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">230</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">212</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">TOTAL
INVENTORIES</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,214</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,074</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 58%; text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Costs
incurred on uncompleted contracts</font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">837</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">894</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Estimated
earnings</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">480</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">491</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Subtotal</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,317</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,385</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Less:
Billings to date</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,493</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,592</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total
Costs and estimated earnings in excess of billings on uncompleted contracts</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(176</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(207</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 58%; text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Costs
and estimated earnings in excess of billings on uncompleted contracts</font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Less:
Billings in excess of costs and estimated earnings on uncompleted contracts</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(176</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(207</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total
Costs and estimated earnings in excess of billings on uncompleted contracts</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(176</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(207</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: middle"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: middle"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 54%; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Capitalized
software development costs</font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 18%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">7,005</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 16%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">7,005</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Patents
and copyrights</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,614</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,571</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Non-compete</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,100</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,100</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Customer
relationships</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,800</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,800</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Gross
Other intangible assets</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">19,519</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">19,476</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Less:
Accumulated amortization</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">12,063</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">11,757</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other
Intangible Assets</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">7,456</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">7,719</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">September
30, 2016</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">June
30, 2016</font></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 58%; text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accrued
salaries, commissions and payroll taxes</font></td><td style="width: 1%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 18%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">860</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 4%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 15%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,189</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accrued
interest</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">45</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">45</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Litigation
accruals</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">545</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">545</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Sales
tax payable</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,387</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,403</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Legal
and other professional fees</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">370</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">385</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Accounting
fees</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">123</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">241</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Self-funded
health insurance reserve</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">9</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">392</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Interest
and penalty - sales tax</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,517</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,487</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,413</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,140</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other
Current Liabilities</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">8,269</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">10,827</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
143000
2953000
2761000
49000
300
7000
-117053000
-120624000
1
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
9 – BUSINESS COMBINATIONS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Acquisitions</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">On
June 30, 2016, the Company purchased 100% interest in TK2 Equipment Management, LLC and Turnkey Services of New York, LLC. The
consideration and net assets acquired is as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 50%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Cash
Paid</font></td><td style="width: 10%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 18%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,224</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
assets at Fair Value</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,862</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt; text-align: left; vertical-align: top"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Goodwill</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,555</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Pro
forma Results</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">The
following unaudited pro forma results of operations for the three months ended September 30, 2015 assumes that the above acquisitions
were made at the beginning of the year prior to acquisition. The unaudited pro forma information does not purport to be indicative
of the results that would have been obtained if the acquisitions had actually occurred at the beginning of the year prior to acquisition,
nor of the results that may be reported in the future.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Three
months ended September 30, 2015</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total
Revenues – Net</font></td><td style="width: 10%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 18%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">17,611</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Income - Controlling Interests</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,953</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Common Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,761</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Class A Non-Voting   Preferred Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">143</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Class C Common Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">49</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic
Net Income Per Common Share Available to Common Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.46</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Diluted
Net Income Per Common Share Available to Common Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.45</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic
and Diluted Income Per Share - Common C</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.13</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Basic Shares Outstanding</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,051</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Diluted Shares Outstanding</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,179</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Basic and Diluted Shares Outstanding - Class C Common</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">FONAR
CORPORATION AND SUBSIDIARIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">SEPTEMBER
30, 2016 and 2015</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Amounts
and shares in thousands, except per share amounts)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(UNAUDITED)</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">NOTE
8 – STOCKHOLDERS EQUITY</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><u>Common
Stock</u></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">During
the three months ended September 30, 2016, the Company issued .3 shares of common stock to employees and consultants as compensation
valued at $7 under a stock bonus plan.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">During
the three months ended September 30, 2016, the Company issued 107 shares of common stock for costs and expenses of $2,239.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">On
June 30, 2016, the Company purchased 100% interest in TK2 Equipment Management, LLC and Turnkey Services of New York, LLC. The
consideration and net assets acquired is as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 50%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Cash
Paid</font></td><td style="width: 10%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 18%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,224</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
assets at Fair Value</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,862</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt; text-align: left; vertical-align: top"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Goodwill</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">1,555</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"></font>The following unaudited pro forma results of operations for the three months ended September 30, 2015 assumes
that the above acquisitions were made at the beginning of the year prior to acquisition. The unaudited pro forma information does
not purport to be indicative of the results that would have been obtained if the acquisitions had actually occurred at the beginning
of the year prior to acquisition, nor of the results that may be reported in the future.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Three
months ended September 30, 2015</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total
Revenues – Net</font></td><td style="width: 10%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 18%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">17,611</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Income - Controlling Interests</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,953</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Common Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,761</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Class A Non-Voting   Preferred Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">143</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
Income Available to Class C Common Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">49</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic
Net Income Per Common Share Available to Common Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.46</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Diluted
Net Income Per Common Share Available to Common Stockholders</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.45</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Basic
and Diluted Income Per Share - Common C</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">0.13</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Basic Shares Outstanding</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,051</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Diluted Shares Outstanding</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">6,179</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Weighted
Average Basic and Diluted Shares Outstanding - Class C Common</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">383</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Summarized
financial information concerning the Company's reportable segments is shown in the following table:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Medical
</font><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><br /><font style="font-weight: normal; font-style: normal">Equipment</font></font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Management
</font><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><br /><font style="font-weight: normal; font-style: normal">Of
Diagnostic </font></font><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><br /><font style="font-weight: normal; font-style: normal">Imaging
</font></font><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><br /><font style="font-weight: normal; font-style: normal">Centers</font></font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Totals</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">For
the three months ended Sept. 30, 2016</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
revenues from external customers</font></td><td style="width: 5%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,621</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">16,113</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 5%"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">18,734</font></td><td style="width: 1%; text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Inter-segment
net revenues</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">381</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">381</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Loss)
Income from operations</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(147</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,900</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">4,753</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">80</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">776</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">856</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Capital
expenditures</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">43</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">599</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">642</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">For
the three months ended Sept. 30, 2015</font></p></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Net
revenues from external customers</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">2,330</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">15,281</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">17,611</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Inter-segment
net revenues</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">524</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">524</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(Loss)
Income from operations</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">(63</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,678</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">3,615</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Depreciation
and amortization</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">78</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">751</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">829</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Capital
expenditures</font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">19</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">45</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="text-align: right"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">64</font></td><td style="text-align: left"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"> </font></p>
107000
7000
2239000
2862000
4224000