FONAR NEWS-051512

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED) ASSETS
	March 31, 2012 (UNAUDITED)	June 30, 2011
Current Assets:
Cash and cash equivalents	$ 11,003	$ 9,251
Marketable securities	34	33
Accounts receivable - net	6,236	5,264
Accounts receivable - related party	30	-
Management and other fees receivable - net	3,633	3,309
Management and other fees receivable - related medical practices - net	1,118	1,669
Costs and estimated earnings in excess of billings on uncompleted contracts	1,172	169
Inventories	3,336	2,400
Current portion of notes receivable - net	116	114
Prepaid expenses and other current assets	223	352
Total Current Assets	26,901	22,561
Property and Equipment - net	3,157	3,769
Notes Receivable	300	359
Other Intangible Assets – Net	4,002	4,318
Other Assets	466	574
Total Assets	34,826 ================	$31,581 ================

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED) LIABILITIES AND STOCKHOLDERS' EQUITY
	March 31, 2012 (UNAUDITED)	June 30, 2011
Current Liabilities:
Current portion of long-term debt and capital leases	$ 1,629	$ 2,026
Accounts payable	2,055	2,187
Other current liabilities	8,164	8,236
Unearned revenue on service contracts	6,357	5,762
Unearned revenue on service contracts - related party	28	-
Customer advances	3,308	4,846
Billings in excess of costs and estimated earnings on uncompleted contracts	804	4
Income tax payable	-	75
Total Current Liabilities	22,345	23,136

Long-Term Liabilities:
Accounts payable – non current	70	102
Due to related medical practices	222	228
Long-term debt and capital leases, less current portion	1,490	1,746
Other liabilities	494	502
Total Long-Term Liabilities	1,824	2,578
Total Liabilities	24,169	25,714

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED) LIABILITIES AND STOCKHOLDERS' EQUITY (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY (continued)	March 31, 2012 (UNAUDITED)	June 30, 2011
STOCKHOLDERS' EQUITY:
Class A non-voting preferred stock $.0001 par value; 453,000 shares authorized at March 31, 2012 and June 30, 2011, 313,451 issued and outstanding at March 31, 2012 and June 30, 2011	-	-
Preferred stock $.001 par value; 567,000 shares authorized at March 31, 2012 and June 30, 2011, issued and outstanding – none	-	-
Common Stock $.0001 par value; 8,500,000 shares authorized at March 31, 2012 and June 30, 2011, 5,872,905 and 5,636,571 issued at March 31, 2012 and June 30, 2011, respectively; 5,861,262 and 5,624,928 outstanding at March 31, 2012 and June 30, 2011, respectively	1	1
Class B Common Stock (10 votes per share) $ .0001 par value; 227,000 shares authorized at March 31, 2012 and June 30, 2011, 158 issued and outstanding at March 31, 2012 and June 30, 2011	-	-
Class C Common Stock (25 votes per share) $.0001 par value; 567,000 shares authorized at March 31, 2012 and June 30, 2011, 382,513 issued and outstanding at March 31, 2012 and June 30, 2011	-	-
Paid-in capital in excess of par value	173,908	173,476
Accumulated other comprehensive loss	(17)	(16)
Accumulated deficit	(169,769)	(174,110)
Notes receivable from employee stockholders	(72)	(115)
Treasury stock, at cost - 11,643 shares of common stock at March 31, 2012 and June 30, 2011	(675)	(675)
Non controlling interests	7,281	7,306
Total Stockholders' Equity	10,657	5,867
Total Liabilities and Stockholders' Equity	$ 34,826 ================	$31,581 ================

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (000's OMITTED, except per share data)
	FOR THE THREE MONTHS ENDED MARCH 31,
REVENUES	2012	2011
Product sales - net	$ 1,309	$ 1,855
Service and repair fees - net	3,008	2,769
Service and repair fees - related parties - net	27	55
Management and other fees - net	3,601	2,726
Management and other fees–related medical practices–net	1,571	1,249
Total Revenues - Net	9,516	8,654
COSTS AND EXPENSES Costs related to product sales	962	1,392
Costs related to service and repair fees	891	792
Costs related to service and repair fees - related parties	8	16
Costs related to management and other fees	2,390	1,768
Costs related to management and other fees - related medical practices	953	616
Research and development	315	453
Selling, general and administrative	2,224	2,064
Provision for bad debts	170	175
Total Costs and Expenses	7,913	7,276

Income from Operations	1,603	1,378

Interest Expense	(103)	(128)
Investment Income	53	64
Other Expense	-	(61)

Net Income	1,553	1,253
Net Income – Non Controlling Interests	261	69
Net Income – Controlling Interests	$ 1,292 ================	$ 1,184 ================
Net Income Available to Common Stockholders	$ 1,206 ================	$ 1,099 ================
Net Income Available to Class A Non-Voting Preferred Stockholders	$ 64 ================	$ 64 ================
Net Income Available to Class C Common Stockholders	$ 22 ================	$ 21 ================
Basic Net Income Per Common Share	$ 0.21 ================	$ 0.21 ================
Diluted Net Income Per Common Share	$ 0.20 ================	$ 0.20 ================
Basic and Diluted Income Per Share - Common C	$ 0.06 ================	$ 0.05 ================
Weighted Average Basic Shares Outstanding	5,836,229 ================	5,345,349 ================
Weighted Average Diluted Shares Outstanding	5,963,733 ================	5,472,853 ================

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (000's OMITTED, except per share data)
	FOR THE NINE MONTHS ENDED MARCH 31,
REVENUES	2012	2011
Product sales - net	$ 4,699	$ 6,303
Service and repair fees - net	8,720	8,111
Service and repair fees - related parties - net	83	165
Management and other fees - net	10,238	7,195
Management and other fees–related medical practices–net	4,712	3,584
Total Revenues - Net	28,452	25,358
COSTS AND EXPENSES Costs related to product sales	3,608	5,265
Costs related to service and repair fees	2,572	2,158
Costs related to service and repair fees - related parties	24	44
Costs related to management and other fees	6,462	4,789
Costs related to management and other fees - related medical practices	2,673	1,988
Research and development	938	1,060
Selling, general and administrative	6,261	6,192
Provision for bad debts	655	606
Total Costs and Expenses	23,193	22,102

Income From Operations	5,259	3,256

Interest Expense	(333)	(359)
Interest Expense – Related Party	-	(4)
Investment Income	178	160
Interest Income - Related Party	-	1
Other Income (Expense)	55	(53)
Provision for Income Taxes	(21)	-
Net Income	5,138	3,001
Net Income – Non Controlling Interests	796	69
Net Income – Controlling Interests	$ 4,342 ================	$ 2,932 ================
Net Income Available to Common Stockholders	$ 4,051 ================	$ 2,720 ================
Net Income Available to Class A Non-Voting Preferred Stockholders	$ 217 ================	$ 164 ================
Net Income Available to Class C Common Stockholders	$ 74 ================	$ 53 ================
Basic Net Income Per Common Share	$ 0.71 ================	$ 0.53 ================
Diluted Net Income Per Common Share	$ 0.69 ================	$ 0.51 ================
Basic and Diluted Income Per Share - Common C	$ 0.19 ================	$ 0.14 ================
Weighted Average Basic Shares Outstanding	5,744,506 ================	5,169,253 ================
Weighted Average Diluted Shares Outstanding	5,872,010 ================	5,296,757 ================