FONAR NEWS-100112

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS
	June 30,
	2012	2011
Current Assets:
Cash and cash equivalents	$ 12,032,015	$ 9,251,244
Accounts receivable – net of allowances for doubtful accounts of $1,852,987 and $1,777,794 at June 30, 2012 and 2011, respectively	5,094,687	5,263,903
Management and other fees receivable – net of allowances for doubtful accounts of $7,458,345 and $6,508,345 at June 30, 2012 and 2011, respectively	3,781,635	3,308,456
Management and other fees receivable – related medical practices – net of allowances for doubtful accounts of $403,047 at June 30, 2012 and at June 30, 2011	1,311,195	1,668,880
Costs and estimated earnings in excess of billings on uncompleted contracts	1,128,596	169,443
Inventories	2,194,949	2,400,240
Current portion of note receivable – net of allowances for doubtful accounts of $65,000 at June 30, 2012 and at June 30, 2011	116,016	114,058
Prepaid expenses and other current assets	206,328	384,437
Total Current Assets	25,865,421	22,560,661
Property and Equipment - net	3,173,447	3,769,424
Notes Receivable	275,966	358,769
Other Intangible Assets – Net	3,835,179	4,318,311
Other Assets	465,455	573,509
Total Assets	$ 33,615,468 ================	$ 31,580,674 ================

LIABILITIES

Current Liabilities:
Current portion of long-term debt and capital leases	$ 1,853,623	$ 2,025,836
Accounts payable	2,076,846	2,187,115
Other current liabilities	7,693,241	8,236,105
Unearned revenue on service contracts	5,474,614	5,762,394
Customer advances	3,881,284	4,845,794
Billings in excess of costs and estimated earnings on uncompleted contracts	-	4,045
Income tax payable	100,000	75,000
Total Current Liabilities	21,079,608	23,136,289

Long-Term Liabilities:
Accounts payable	47,600	102,000
Due to related medical practices	228,741	228,267
Long-term debt and capital leases, less current portion	777,274	1,746,286
Other liabilities	400,714	502,018
Total Long-Term Liabilities	1,454,329	2,578,571
Total Liabilities	22,533,937	25,714,860

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS STOCKHOLDERS' EQUITY
	June 30,
	2012	2011
Stockholder's Equity:
Class A non-voting preferred stock $.0001 par value; 453,000 shares authorized at June 30, 2012 and June 30, 2011, 313,438 issued and outstanding at June 30, 2012 and 2011	$ 31	$ 31
Preferred stock $.001 par value; 567,000 shares authorized at June 30, 2012 and June 30, 2011, issued and outstanding – none	-	-
Common stock $.0001 par value; 8,500,000 shares authorized at June 30, 2012 and June 30, 2011, 5,912,905 and 5,636,571 issued at June 30, 2012 and 2011, respectively; 5,901,262 and 5,624,928 outstanding at June 30, 2012 and 2011, respectively	590	562
Class B common stock (10 votes per share) $.0001 par value; 227,000 shares authorized at June 30, 2012 and June 30, 2011, 158 issued and outstanding at June 30, 2012 and 2011	-	-
Class C common stock (25 votes per share) $.0001 par value; 567,000 shares authorized at June 30, 2012 and June 30, 2011, 382,513 issued and outstanding at June 30, 2012 and 2011	38	38
Paid-in capital in excess of par value	174,084,007	173,476,059
Accumulated other comprehensive loss	(19,534))	(16,179)
Accumulated deficit	(168,333,958)	(174,110,439)
Notes receivable from employee stockholders	(70,813))	(115,305)
Treasury stock, at cost – 11,643 shares of common stock at June 30, 2012 and 2011	(675,390))	(675,390)
Non controlling interests	6,096,560	7,306,437
Total Stockholders' Equity	11,081,531	5,865,814
Total Liabilities and Stockholders' Equity	$ 33,615,468 ================	$ 31,580,674 ================

FONAR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
	For the Years Ended June 30,
	2012	2011
Revenues
Product sales - net	$ 6,922,465	$ 6,682,297
Service and repair fees - net	11,674,541	10,936,839
Service and repair fees - related parties - net	110,000	192,500
Management and other fees - net	14,060,275	10,170,086
Management and other fees–related medical practices–net	6,677,138	5,154,673
Total Revenues - Net	39,444,419	33,136,395
Costs and Expenses Costs related to product sales	5,387,923	5,768,601
Costs related to service and repair fees	3,453,116	2,936,435
Costs related to service and repair fees - related parties	32,536	51,684
Costs related to management and other fees	8,733,823	6,781,638
Costs related to management and other fees - related medical practices	3,588,282	2,941,192
Research and development	1,242,656	1,440,032
Selling, general and administrative, inclusive of compensatory element of stock issuances of $180,418 and $204,486 for the years ended June 30, 2012 and 2011, respectively	8,749,090	8,462,335
Provision for bad debts	1,050,442	963,009
Total Costs and Expenses	32,237,868	29,344,926

Income from Operations	7,206,551	3,791,469
Other Income and (Expenses):
Interest Expense	(478,663)	(514,703)
Interest expense – related parties	-	(3,829)
Investment income	243,254	226,610
Interest income – related parties	-	1,564
Other income (expense) – net	45,056	(116,617)
Income Before Provision For Income Taxes and Non Controlling Interests	7,016,198	3,384,494
Provision for Income Taxes	141,125	75,475
Net Income	$ 6,875,073	$ 3,309,019
Net Income – Non Controlling Interests	(1,098,592)	(148,109)
Net Income – Controlling Interests	$ 5,776,481 ================	$ 3,160,910 ================
Net Income Available to Common Stockholders	$5,392,212 ================	$2,941,026 ================
Net Income Available to Class A Non-Voting Preferred Stockholders	$286,406 ================	$ 163,886 ================
Net Income Available to Class C Common Stockholders	$ 97,863 ================	$ 55,998 ================
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.93 ================	$ 0.56 ================
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.91 ================	$ 0.55 ================
Basic and Diluted Income Per Share – Common C	$ 0.26 ================	$ 0.15 ================
Weighted Average Basic Shares Outstanding – Common Stockholder	5,778,695 ================	5,264,795 ================
Weighted Average Diluted Shares Outstanding – Common Stockholder	5,906,199 ================	5,392,299 ================
Weighted Average Basic Shares Outstanding – Class C Common	382,513 ================	382,513 ================
Weighted Average Diluted Shares Outstanding – Class C Common	382,513 ================	382,513 ================