FONAR NEWS-021412

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED) ASSETS
	December 31, 2011 (UNAUDITED)	June 30, 2011
Current Assets:
Cash and cash equivalents	$ 9,911	$ 9,251
Marketable securities	30	33
Accounts receivable - net	4,823	5,264
Accounts receivable - related party	60	-
Management and other fees receivable - net	3,635	3,309
Management and other fees receivable - related medical practices - net	1,307	1,669
Costs and estimated earnings in excess of billings on uncompleted contracts	1,152	169
Inventories	3,806	2,400
Current portion of notes receivable - net	115	114
Prepaid expenses and other current assets	270	352
Total Current Assets	25,109	22,561
Property and Equipment - net	3,374	3,769
Notes Receivable	315	359
Other Intangible Assets – Net	4,120	4,318
Other Assets	535	574
Total Assets	33,453 ================	$31,581 ================

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED) LIABILITIES AND STOCKHOLDERS' EQUITY
	December 31, 2011 (UNAUDITED)	June 30, 2011
Current Liabilities:
Current portion of long-term debt and capital leases	$ 1,636	$ 2,026
Accounts payable	1,959	2,187
Other current liabilities	8,956	8,236
Unearned revenue on service contracts	5,275	5,762
Unearned revenue on service contracts - related party	55	-
Customer advances	3,303	4,846
Billings in excess of costs and estimated earnings on uncompleted contracts	736	4
Income tax payable	-	75
Total Current Liabilities	21,920	23,136

Long-Term Liabilities:
Accounts payable	141	102
Due to related medical practices	229	228
Long-term debt and capital leases, less current portion	1,490	1,746
Other liabilities	494	502
Total Long-Term Liabilities	2,354	2,578
Total Liabilities	24,274	25,714

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED) LIABILITIES AND STOCKHOLDERS' EQUITY (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY (continued)	December 31, 2011 (UNAUDITED)	June 30, 2011
STOCKHOLDERS' EQUITY:
Class A non-voting preferred stock $.0001 par value; 453,000 shares authorized at December 31, 2011 and June 30, 2011, 313,451 issued and outstanding at December 31, 2011 and June 30, 2011	-	-
Preferred stock $.001 par value; 567,000 shares authorized at December 31, 2011 and June 30, 2011, issued and outstanding – none	-	-
Common Stock $.0001 par value; 8,500,000 shares authorized at December 31, 2011 and June 30, 2011, 5,774,371 and 5,636,571 issued at December 31, 2011 and June 30, 2011, respectively; 5,762,728 and 5,624,928 outstanding at December 31, 2011 and June 30, 2011, respectively	1	1
Class B Common Stock (10 votes per share) $ .0001 par value; 227,000 shares authorized at December 31, 2011 and June 30, 2011, 158 issued and outstanding at December 31, 2011 and June 30, 2011	-	-
Class C Common Stock (25 votes per share) $.0001 par value; 567,000 shares authorized at December 31, 2011 and June 30, 2011, 382,513 issued and outstanding at December 31, 2011 and June 30, 2011	-	-
Paid-in capital in excess of par value	173,729	173,476
Accumulated other comprehensive loss	(20)	(16)
Accumulated deficit	(171,061)	(174,110)
Notes receivable from employee stockholders	(74)	(115)
Treasury stock, at cost - 11,643 shares of common stock at December 31, 2011 and June 30, 2011	(675)	(675)
Non controlling interests	7,279	7,306
Total Stockholders' Equity (Deficiency)	9,179	5,867
Total Liabilities and Stockholders' Equity	$ 33,453 ================	$31,581 ================

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (000's OMITTED, except per share data)
	FOR THE THREE MONTHS ENDED DECEMBER 31,
REVENUES	2011	2010
Product sales - net	$ 1,615	$ 1,789
Service and repair fees - net	2,807	2,653
Service and repair fees - related parties - net	27	55
Management and other fees - net	3,308	2,380
Management and other fees–related medical practices–net	1,571	1,142
Total Revenues - Net	9,328	8,019
COSTS AND EXPENSES Costs related to product sales	1,171	1,368
Costs related to service and repair fees	868	700
Costs related to service and repair fees - related parties	9	15
Costs related to management and other fees	1,887	1,707
Costs related to management and other fees - related medical practices	901	633
Research and development	293	153
Selling, general and administrative	1,995	1,745
Provision for bad debts	310	255
Total Costs and Expenses	7,434	6,576

Income (Loss) from Operations	1,894	1,443

Interest Expense	(124)	(137)
Investment Income	64	58
Other Expense	(1)	(1)
Provision for Income Taxes	(21)	-

Net Income	1,812	1,363
Net Income – Non Controlling Interests	276	-
Net Income – Controlling Interests	$ 1,536 ================	$ 1,363 ================
Net Income Available to Common Stockholders	$ 1,432 ================	$ 1,262 ================
Net Income Available to Class A Non-Voting Preferred Stockholders	$ 78 ================	$ 75 ================
Net Income Available to Class C Common Stockholders	$ 26 ================	$ 26 ================
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.25 ================	$ 0.25 ================
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.24 ================	$ 0.24 ================
Basic and Diluted Income Per Share - Common C	$ 0.07 ================	$ 0.07 ================
Weighted Average Basic Shares Outstanding	5,728,528 ================	5,149,499 ================
Weighted Average Diluted Shares Outstanding	5,856,032 ================	5,277,003 ================

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (000's OMITTED, except per share data)
	FOR THE SIX MONTHS ENDED DECEMBER 31,
REVENUES	2011	2010
Product sales - net	$ 3,391	$ 4,448
Service and repair fees - net	5,712	5,342
Service and repair fees - related parties - net	55	110
Management and other fees - net	6,637	4,469
Management and other fees–related medical practices–net	3,141	2,335
Total Revenues - Net	18,936	16,704
COSTS AND EXPENSES Costs related to product sales	2,646	3,873
Costs related to service and repair fees	1,682	1,366
Costs related to service and repair fees - related parties	16	28
Costs related to management and other fees	4,072	3,021
Costs related to management and other fees - related medical practices	1,720	1,372
Research and development	622	607
Selling, general and administrative	4,037	4,128
Provision for bad debts	485	431
Total Costs and Expenses	15,280	14,826

Income From Operations	3,656	1,878

Interest Expense	(231)	(231)
Interest Expense – Related Party	-	(4)
Investment Income	126	96
Interest Income - Related Party	-	1
Other Income	55	8
Provision for Income Taxes	(21)	-
Net Income	3,585	1,748
Net Income – Non Controlling Interests	535	-
Net Income – Controlling Interests	$ 3,050 ================	$ 1,748 ================
Net Income Available to Common Stockholders	$ 2,842 ================	$ 1,618 ================
Net Income Available to Class A Non-Voting Preferred Stockholders	$ 155 ================	$ 97 ================
Net Income Available to Class C Common Stockholders	$ 53 ================	$ 33 ================
Basic Net Income Per Common Share	$ 0.50 ================	$ 0.32 ================
Diluted Net Income Per Common Share	$ 0.49 ================	$ 0.31 ================
Basic and Diluted Income Per Share - Common C	$ 0.14 ================	$ 0.09 ================
Weighted Average Basic Shares Outstanding	5,698,645 ================	5,080,872 ================
Weighted Average Diluted Shares Outstanding	5,826,149 ================	5,208,376 ================