FONAR NEWS-100311

FONAR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS
	June 30,
	2011	2010
Current Assets:
Cash and cash equivalents	$ 9,251,244	$ 1,299,493
Marketable securities	32,531	27,613
Accounts receivable - net of allowances for doubtful accounts of $1,777,794 and $2,289,049 at June 30, 2011 and 2010, respectively	5,263,903	4,820,541
Medical receivables – net of allowances for doubtful accounts of $1,622,000 at June 30, 2011 and at June 30, 2010	-	25,225
Management and other fees receivable – net of allowances for doubtful accounts of $6,508,345 and $5,808,345 at June 30, 2011 and 2010, respectively	3,308,456	2,568,526
Management and other fees receivable – related medical practices – net of allowances for doubtful accounts of $403,047 and $1,129,818 at June 30, 2011 and 2010, respectively	1,668,880	1,921,983
Costs and estimated earnings in excess of billings on uncompleted contracts	169,443	277,384
Inventories	2,400,240	2,826,211
Current portion of advances and notes to related medical practices – net of allowance for doubtful accounts of $264,791 at June 30, 2011 and at June 30, 2010	-	83,423
Current portion of note receivable – net of Allowances for doubtful accounts of $65,000 and $115,000 at June 30, 2011 and at June 30, 2010, respectively	114,058	271,796
Prepaid expenses and other current assets	351,906	552,800
Total Current Assets	22,560,661	14,674,995
Property and Equipment - net	3,769,424	2,108,556
Notes Receivable	358,769	-
Other Intangible Assets – Net	4,318,311	4,291,419
Other Assets	573,509	553,875
Total Assets	$ 31,580,674 ================	$ 21,628,845 ================

FONAR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LIABILITIES
	June 30,
	2011	2010
Current Liabilities:
Current portion of long-term debt and capital leases	$ 2,025,836	$ 579,436
Current portion of long-term debt – related party	-	87,835
Accounts payable	2,187,115	3,191,960
Other current liabilities	8,236,105	8,065,069
Unearned revenue on service contracts	5,762,394	5,219,547
Customer advances	4,845,794	4,813,327
Billings in excess of costs and estimated earnings on uncompleted contracts	4,045	2,743,398
Income tax payable	75,000	-
Total Current Liabilities	23,136,289	24,700,572
Long-Term Liabilities:
Accounts payable	102,000	62,622
Due to related medical practices	228,267	527,891
Long-term debt and capital leases, less current portion	1,746,286	1,566,622
Long-term debt, less current portion – related party	-	72,341
Other liabilities	502,018	474,763
Total Long-Term Liabilities	2,578,571	2,704,239
Total Liabilities	25,714,860	27,404,811
Commitments, Contingencies and Other Matters

FONAR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS STOCKHOLDERS' EQUITY (DEFICIENCY)
	June 30,
	2011	2010
Stockholders' Equity (Deficiency): Class A non-voting preferred stock - $.0001 par value; authorized – 453,000 and 1,600,000 shares at June 30, 2011 and 2010, respectively; issued and outstanding – 313,451 shares at June 30, 2011 and 2010	$ 31	$ 31
Preferred stock - $.001 par value; authorized – 567,000 and 2,000,000 shares at June 30, 2011 and 2010, respectively; issued and outstanding – none	-	-
Common stock - $.0001 par value; authorized - 8,500,000 and 30,000,000 shares at June 30, 2011 and 2010, respectively; issued – 5,636,571 and 4,985,850 shares at June 30, 2011 and 2010, respectively; outstanding – 5,624,928 and 4,974,207 shares at June 30, 2011 and 2010,respectively	562	497
Class B common stock (10 votes per share) - $.0001 par value; authorized – 227,000 and 800,000 shares at June 30, 2011 and 2010, respectively; issued and outstanding – 158 shares at June 30, 2011 and 2010	-	-
Class C common stock (25 votes per share) - $.0001 par value; authorized – 567,000 and 2,000,000 shares at June 30, 2011 and 2010, respectively; issued and outstanding – 382,513 shares at June 30, 2011 and 2010	38	38
Paid-in capital in excess of par value	173,476,059	172,379,863
Accumulated other comprehensive loss	(16,179)	(18,489)
Accumulated deficit	(174,110,439)	(177,271,349)
Notes receivable from employee stockholders	(115,305)	(191,167)
Treasury stock, at cost – 11,643 shares of common stock at June 30, 2011 and 2010	(675,390)	(675,390)
Non controlling interests	7,306,437	-
Total Stockholders' Equity (Deficiency)	5,865,814	(5,775,966)
Total Liabilities and Stockholders' Equity (Deficiency)	$ 31,580,674 ================	$ 21,628,845 ================

FONAR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
	For the Years Ended June 30,
	2011	2010
REVENUES Product sales - net	$ 6,682,297	$ 9,056,307
Service and repair fees - net	10,936,839	10,864,927
Service and repair fees - related parties - net	192,500	220,000
Management and other fees - net	10,170,086	7,302,216
Management and other fees–related medical practices–net	5,154,673	3,786,612
License fees and royalties	-	585,493
Total Revenues - Net	33,136,395	31,815,555
Costs and Expenses Costs related to product sales	5,768,601	7,248,756
Costs related to service and repair fees	2,936,435	3,026,598
Costs related to service and repair fees - related parties	51,684	61,284
Costs related to management and other fees	6,781,638	5,320,756
Costs related to management and other fees - related medical practices	2,941,192	2,962,826
Research and development	1,440,032	2,458,342
Selling, general and administrative, inclusive of compensatory element of stock issuances of $204,486 and $99,269 for the years ended June 30, 2011 and 2010, respectively	8,462,335	11,939,223
Provision for bad debts	963,009	1,378,500
Total Costs and Expenses	29,344,926	34,396,285
Income (Loss) from Operations	3,791,469	( 2,580,730)
Other Income and (Expenses):
Interest Expense	( 514,703)	(313,416)
Interest Expense – Related Parties	( 3,829)	( 74,486)
Investment Income	226,610	249,290
Interest Income - Related Party	1,564	10,926
Other (expense) income – net	( 116,617)	45,674
Loss on note receivable	-	(350,000)
Income (Loss) Before Provision For Income Taxes and Non Controlling Interests	3,384,494	( 3,012,742)
Provision for Income Taxes	75,475	-
Net Income (Loss)	$ 3,309,019	$( 3,012,742)
Net Income – Non Controlling Interests	( 148,109)	-
Net Income (Loss) – Controlling Interests	$ 3,160,910 ================	$( 3,012,742) ================

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