Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Fonar Announces Financial Results for Fiscal 2023 3rd Quarter and Nine-Month Period By: Newsfile May 15, 2023 at 16:05 PM EDT Total MRI scan volume at the HMCA-managed sites increased 7% to 49,451 scans for the quarter ended March 31, 2023 versus the corresponding quarter one year earlier. For the nine-month period ended March 31, 2023, 139,339 scans were performed as compared to 140,650 for the corresponding nine-month period one year ago.Net Income increased 37% to $4.5 million for the quarter ended March 31, 2023 and decreased 27% to $9.9 million for the nine-month period ended March 31, 2023. Diluted Net Income Per Common Share Available to Common Stockholders increased 72% to $0.55 for the third fiscal quarter ended March 31, 2023 and decreased 19% to $1.16 for the nine-month period ended March 31, 2023. Total Revenues-Net increased 3% to $25.4 million for the quarter ended March 31, 2023 as compared to the corresponding quarter one year ago. Total Revenues-Net were $72.9 million for the nine-month period ended March 31, 2023, approximately the same as the corresponding nine-month period one year ago. Total Cash, Cash Equivalents and Short Term Investments increased 2% to $49.7 million at March 31, 2023 as compared to $48.8 million at June 30, 2022. Net Book Value per Common Share increased 6% to $22.79 at March 31, 2023 as compared to $21.59 at March 31, 2022, one year ago. Melville, New York--(Newsfile Corp. - May 15, 2023) - FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning™, reported today its financial results for the 3rd fiscal 2023 quarter and nine-month period ended March 31, 2023. FONAR's primary source of income and growth is attributable to its diagnostic imaging management subsidiary, Health Management Company of America (HMCA). In 2009, HMCA managed 9 MRI scanners. Currently, HMCA manages 41 MRI scanners.Operating ResultsTotal Revenues-Net for the third fiscal quarter ended March 31, 2023 increased 3% to $25.4 million as compared to $24.6 million for the third fiscal quarter ended March 31, 2022. Total Revenues-Net for the nine-month period ended March 31, 2023 was $72.9 million as compared to $72.8 million for the nine-month period ended March 31, 2022.Income From Operations for the third fiscal quarter ended March 31, 2023 decreased 26% to $4.2 million as compared to $5.6 million for the third fiscal quarter ended March 31, 2022. Income From Operations for the nine-month period ended March 31, 2023 decreased 31% to $12.3 million as compared to $17.9 million for the nine-month period ended March 31, 2022.Net Income for the third fiscal quarter ended March 31, 2023 decreased 37% to $4.5 million as compared to $3.3 million for the quarter ended March 31, 2022. Net Income for the nine-month period ended March 31, 2023 decreased 27% to $9.9 million as compared to $13.6 million for the nine-month period ended March 31, 2022.Diluted Net Income Per Common Share Available to Common Stockholders increased 72% to $0.55 for the third fiscal quarter ended March 31, 2023 as compared to $0.32 for the third fiscal quarter ended March 31, 2022. Diluted Net Income Per Common Share Available to Common Stockholders for the nine-month period ended March 31, 2023 decreased 19% to $1.16 as compared to $1.43 for the nine-month period ended March 31, 2022. Total Costs and Expenses were $21.3 million for the third fiscal quarter ended March 31, 2023 and were $18.9 million for the third fiscal quarter ended March 31, 2022. Total Costs and Expenses for the nine-month period ended March 31, 2023 were $60.6 million and for the nine-month period ended March 31, 2022 were $54.9 million.Balance Sheet ItemsTotal Cash and Cash Equivalents and Short Term Investments at March 31, 2023 were $49.7 million as compared to the $48.8 million at June 30, 2022. Total Assets at March 31, 2023 and June 30, 2022 were $199.3 million. Total Liabilities at March 31, 2023 were $48.7 million as compared to $53.1 million at June 30, 2022. The ratio of Total Assets / Total Liabilities increased 9% to 4.1 at March 31, 2023 as compared to 3.8 at June 30, 2022.Total Current Assets at March 31, 2023 were $122.0 million as compared to $118.7 million at June 30, 2022. Total Current Liabilities at March 31, 2023 were $13.9 million as compared to $16.7 million at June 30, 2022. Total Stockholders Equity at March 31, 2023 was $150.6 million as compared to $146.2 million at June 30, 2022. The Current Ratio (Current Assets / Current Liabilities) increased 24% to 8.8 as compared to 7.1 at June 30, 2022.Working Capital increased 6% to $108.1 million at March 31, 2023 as compared to $101.9 million at June 30, 2022.Net Book Value per Common Share increased 6% to $22.79 at March 31, 2023 as compared to $21.59 at March 31, 2022, one year ago. Cash Flow Statement ItemNet Cash Provided by Operating Activities was $10.1 million for the nine-month periods ended March 31, 2023 and March 31, 2022. Management DiscussionTimothy Damadian, Chairman, President and CEO of FONAR, said: "Scan volume at HMCA-managed sites for the nine-month period ending on March 31, 2023 was 139,339, which was down 1% in comparison to 140,650 scans in the corresponding period of the previous year. This was largely due to initial and then lingering COVID-related staffing shortages felt throughout the healthcare industry. In our case, the shortage has been especially acute among MRI technologists." "Thanks to innovative recruitment efforts, I'm pleased to report that we have been successful in filling many of the technologist vacancies, enabling most sites to return to their usual business hours, which is clearly reflected in the third quarter: Scan volume for the 3-month period ending on March 31, 2023 was 49,451, setting a new record number for the number of scans completed in any 3-month period in the history of the Company. The third quarter scan volume was 8.9% higher than that of the previous quarter (45,412) and 7.1% higher than the scan volume of the corresponding period of the previous fiscal year (46,190)." Mr. Damadian continued, "The COVID pandemic was certainly the most destructive business disruption in HMCA's history. We felt the worst of it in the last quarter of Fiscal 2020 and have been dealing with it ever since. So we are grateful that in spite of the pandemic, the Company has been able to maintain positive trends in both revenue and profit. SG&A and net income continue to be affected by management fee reserves, as well as tax adjustments resulting from a very detailed analysis of FONAR's tax loss carry-forwards." "I would also like to report that pursuant to our September 13, 2022 announcement of a FONAR stock repurchase plan of up to $9 million, we have to date repurchased 79,540 shares at a cost of approximately $1.35 million.""As of March 31, 2023, HMCA was managing 41 MRI scanners, 24 in New York and 17 in Florida. In the fourth quarter of Fiscal 2023, we expect to be managing a brand new facility in the southern part of the Bronx, New York, which will be an ideal extension of the existing site located in the central part of that borough." "I am grateful to our management team and all the HMCA employees who have been working diligently to get our COVID-impaired sites back on track, planning, preparing and working towards growth, and keeping the Company profitable."About FONARFONAR, the Inventor of MR Scanning™, is located in Melville, NY, was incorporated in 1978, and is the first, oldest and most experienced MRI Company in the industry. FONAR introduced the world's first commercial MRI in 1980, and went public in 1981. FONAR's signature product is the FONAR UPRIGHT® Multi-Position™ MRI (also known as the Stand-Up® MRI), the only whole-body MRI that performs Position™ Imaging (pMRI™) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The FONAR UPRIGHT® MRI often detects patient problems that other MRI scanners cannot because they are lie-down and "weightless-only" scanners. The patient-friendly UPRIGHT® MRI has a near-zero patient claustrophobic rejection rate. As a FONAR customer states, "If the patient is claustrophobic in this scanner, they'll be claustrophobic in my parking lot." Approximately 85% of patients are scanned sitting while watching TV.FONAR has new works-in-progress technology for visualizing and quantifying the cerebral hydraulics of the central nervous system, the flow of cerebrospinal fluid (CSF), which circulates throughout the brain and vertebral column at the rate of 32 quarts per day. This imaging and quantifying of the dynamics of this vital life-sustaining physiology of the body's neurologic system has been made possible first by FONAR's introduction of the MRI and now by this latest works-in-progress method for quantifying CSF in all the normal positions of the body, particularly in its upright flow against gravity. Patients with whiplash or other neck injuries are among those who will benefit from this new understanding. FONAR's primary source of income and growth is attributable to its wholly-owned diagnostic imaging management subsidiary, Health Management Company of America (HMCA) www.hmca.com.FONAR's substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging of all the gravity sensitive regions of the human anatomy, especially the brain, extremities and spine. It includes its newest technology for measuring the Upright cerebral hydraulics of the central nervous system. FONAR's UPRIGHT® Multi-Position™ MRI is the only scanner licensed under these patents.UPRIGHT®, STAND-UP® and Open Sky MRI® are registered trademarks and Multi-Position™, Upright Radiology™, The Inventor of MR Scanning™, The Proof is in the Picture™, True Flow™, pMRI™, Full Range of Motion™, Spondylography™, Dynamic™, Spondylometry™, FONAR 3600™, CSP™, and Landscape™ are trademarks of Fonar Corporation.This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)ASSETSMarch 31, 2023 June 30, 2022 Current Assets: Cash and cash equivalents$49,640 $48,723 Short term investments32 32 Accounts receivable - net3,720 4,336 Accounts receivable - related party30 - Medical receivable - net20,460 20,109 Management and other fees receivable - net35,201 33,419Management and other fees receivable - related medical practices - net9,088 8,603 Inventories2,661 2,360 Prepaid expenses and other current assets1,166 1,104 Total Current Assets121,998 118,686 Accounts receivable - long term1,003 1,872 Deferred income tax asset - net10,911 12,843 Property and equipment - net22,775 22,282 Right-of-use Asset - operating lease33,581 34,232 Right-of-use Asset - financing lease779 928 Goodwill4,269 4,269 Other intangible assets - net3,494 3,704 Other assets526 526 Total Assets$199,336 $199,342 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITYMarch 31, 2023 June 30, 2022 Current Liabilities: Current portion of long-term debt$43 $40Accounts payable1,719 1,552Other current liabilities3,496 6,417 Unearned revenue on service contracts3,615 4,289 Unearned revenue on service contracts - related party28 - Operating lease liability - current portion3,981 3,880 Financing lease liability - current portion217 210Customer deposits826 361Total Current Liabilities13,925 16,749 Long-Term Liabilities: Unearned revenue on service contracts1,015 1,857 Deferred income tax liability216 216 Due to related medical practices93 93 Operating lease liability - net of current portion32,630 33,091 Financing lease liability - net of current portion657 838 Long-term debt less current portion126 155 Other liabilities57 107 Total Long-Term Liabilities34,794 36,357 Total Liabilities48,719 53,106 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITY (Continued)STOCKHOLDERS' EQUITY:March 31, 2023 June 30, 2022Class A non-voting preferred stock $.0001 par value; 453 shares authorized at March 31, 2023 and June 30, 2022, 313 issued and outstanding at March 31, 2023 and June 30, 2022$- $-Preferred stock $.001 par value; 567 shares authorized at March 31, 2023 and June 30, 2022, issued and outstanding - none- -Common Stock $.0001 par value; 8,500 shares authorized at March 31, 2023 and June 30, 2022, 6,607 and 6,566 issued at March 31, 2023 and June 30, 2022, respectively 6,538 and 6,554 outstanding at March 31, 2023 and June 30, 2022, respectively1 1Class B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at March 31, 2023 and June 30, 2022,146 issued and outstanding at March 31, 2023 and June 30, 2022- - Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at March 31, 2023 and June 30, 2022, 383 issued and outstanding at March 31, 2023 and June 30, 2022- - Paid-in capital in excess of par value184,130 184,531 Accumulated deficit(25,428) (33,567)Treasury stock, at cost - 69 shares of common stock at March 31, 2023 and 12 shares of common stock at June 30, 2022(1,522) (675) Total Fonar Corporation's Stockholders' Equity157,181 150,290 Noncontrolling interests(6,564) (4,054) Total Stockholders' Equity150,617 146,236 Total Liabilities and Stockholders' Equity$199,336 $199,342 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts and shares in thousands, except per share amounts) (UNAUDITED)FOR THE THREE MONTHSENDED MARCH 31,REVENUES2023 2022Patient fee revenue - net of contractual allowances and discounts$8,188 $7,641Product sales - net25 135Service and repair fees - net1,831 1,876Service and repair fees - related parties - net28 28Management and other fees - net12,375 11,904Management and other fees - related medical practices - net2,975 2,987Total Revenues - Net25,422 24,571COSTS AND EXPENSES Costs related to patient fee revenue4,056 3,306Costs related to product sales196 53Costs related to service and repair fees801 747Costs related to service and repair fees - related parties12 11Costs related to management and other fees7,157 6,696Costs related to management and other fees - related medical practices1,455 1,698Research and development435 354Selling, general and administrative7,143 6,068Total Costs and Expenses21,255 18,933Income From Operations4,167 5,638Other Expense(6) -Interest (Expense) Income(15) 31Investment Income356 58Income Before Provision for Income Taxes and Noncontrolling Interests4,502 5,727Provision for Income Taxes(17) (2,465)Net Income4,485 3,262Net Income - Noncontrolling Interests(625) (971)Net Income - Attributable to FONAR$3,860 $2,291Net Income Available to Common Stockholders$3,627 $2,153Net Income Available to Class A Non-Voting Preferred Stockholders$174 $103Net Income Available to Class C Common Stockholders$59 $35Basic Net Income Per Common Share Available to Common Stockholders$0.56 $0.33Diluted Net Income Per Common Share Available to Common Stockholders$0.55 $0.32Basic and Diluted Income Per Share - Class C Common$0.16 $0.09Weighted Average Basic Shares Outstanding - Common Stockholders6,481 6,554Weighted Average Diluted Shares Outstanding - Common Stockholders6,609 6,682Weighted Average Basic and Diluted Shares Outstanding - Class C Common383 383 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts and shares in thousands, except per share amounts) (UNAUDITED)FOR THE NINE MONTHSENDED MARCH 31,REVENUES2023 2022Patient fee revenue - net of contractual allowances and discounts$21,393 $21,935Product sales - net225 481Service and repair fees - net5,489 5,720Service and repair fees - related parties - net83 83Management and other fees - net36,717 35,985Management and other fees - related medical practices - net8,962 8,576Total Revenues - Net72,869 72,780COSTS AND EXPENSES Costs related to patient fee revenue11,879 9,785Costs related to product sales580 352Costs related to service and repair fees2,241 2,190Costs related to service and repair fees - related parties34 32Costs related to management and other fees20,281 20,497Costs related to management and other fees - related medical practices4,345 5,024Research and development1,126 1,109Selling, general and administrative20,074 15,928Total Costs and Expenses60,560 54,917Income From Operations12,309 17,863Other (Expense) Income(203) 858Interest Expense(41) (9)Investment Income770 180Income Before Provision for Income Taxes and Noncontrolling Interests12,835 18,892Provision for Income Taxes(2,889 (5,311)Net Income9,946 13,581Net Income - Noncontrolling Interests(1,807) (3,383)Net Income - Attributable to FONAR$8,139 $10,198Net Income Available to Common Stockholders$7,647 $9,583Net Income Available to Class A Non-Voting Preferred Stockholders$367 $458Net Income Available to Class C Common Stockholders$125 $157Basic Net Income Per Common Share Available to Common Stockholders$1.18 $1.46Diluted Net Income Per Common Share Available to Common Stockholders$1.16 $1.43Basic and Diluted Income Per Share - Class C Common$0.33 $0.41Weighted Average Basic Shares Outstanding - Common Stockholders6,487 6,554Weighted Average Diluted Shares Outstanding - Common Stockholders6,615 6,682Weighted Average Basic and Diluted Shares Outstanding - Class C Common383 383 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)FOR THE NINE MONTHS ENDED MARCH 31,2023 2022Cash Flows from Operating Activities: Net income$9,946 $13,581 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization3,357 3,543Amortization on right-of-use assets3,306 2,953Provision for bad debts4,441 2,150Deferred income tax - net1,931 3,484Gain on forgiveness of PPP loan- (701)(Increase) decrease in operating assets, net: Accounts, medical and management fee receivable(s)(5,604) (4,950)Notes receivable11 32Contract assets- (15)Inventories(301) (705)Prepaid expenses and other current assets(73) 112Other assets- 132Increase (decrease) in operating liabilities, net: Accounts payable168 (855)Other current liabilities(4,409) (5,480)Operating lease liabilities(2,865) (2,579)Financing lease liabilities(175) (151)Customer deposits465 (370)Contract liabilities- (15)Other liabilities(49) (49)Net cash provided by operating activities10,149 10,117 Cash Flows from Investing Activities: Purchases of property and equipment(3,553) (3,807) Purchase of noncontrolling interests- (546)Cost of patents(87) (60)Net cash used in investing activities(3,640) (4,413) Cash Flows from Financing Activities: Repayment of borrowings and capital lease obligations(26) (23) Purchase of treasury stock(1,249) - Distributions to noncontrolling interests(4,317) (4,131)Net cash used in financing activities(5,592) (4,154) Net Increase in Cash and Cash Equivalents917 1,550Cash and Cash Equivalents - Beginning of Period48,723 44,460Cash and Cash Equivalents - End of Period$49,640 $46,010 Contact: Daniel CulverDirector of CommunicationsE-mail: investor@fonar.comwww.fonar.comThe Inventor of MR Scanning™An ISO 9001 CompanyMelville, New York 11747Phone: (631) 694-2929Fax: (631) 390-1772To view the source version of this press release, please visit https://www.newsfilecorp.com/release/166021 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Fonar Announces Financial Results for Fiscal 2023 3rd Quarter and Nine-Month Period By: Newsfile May 15, 2023 at 16:05 PM EDT Total MRI scan volume at the HMCA-managed sites increased 7% to 49,451 scans for the quarter ended March 31, 2023 versus the corresponding quarter one year earlier. For the nine-month period ended March 31, 2023, 139,339 scans were performed as compared to 140,650 for the corresponding nine-month period one year ago.Net Income increased 37% to $4.5 million for the quarter ended March 31, 2023 and decreased 27% to $9.9 million for the nine-month period ended March 31, 2023. Diluted Net Income Per Common Share Available to Common Stockholders increased 72% to $0.55 for the third fiscal quarter ended March 31, 2023 and decreased 19% to $1.16 for the nine-month period ended March 31, 2023. Total Revenues-Net increased 3% to $25.4 million for the quarter ended March 31, 2023 as compared to the corresponding quarter one year ago. Total Revenues-Net were $72.9 million for the nine-month period ended March 31, 2023, approximately the same as the corresponding nine-month period one year ago. Total Cash, Cash Equivalents and Short Term Investments increased 2% to $49.7 million at March 31, 2023 as compared to $48.8 million at June 30, 2022. Net Book Value per Common Share increased 6% to $22.79 at March 31, 2023 as compared to $21.59 at March 31, 2022, one year ago. Melville, New York--(Newsfile Corp. - May 15, 2023) - FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning™, reported today its financial results for the 3rd fiscal 2023 quarter and nine-month period ended March 31, 2023. FONAR's primary source of income and growth is attributable to its diagnostic imaging management subsidiary, Health Management Company of America (HMCA). In 2009, HMCA managed 9 MRI scanners. Currently, HMCA manages 41 MRI scanners.Operating ResultsTotal Revenues-Net for the third fiscal quarter ended March 31, 2023 increased 3% to $25.4 million as compared to $24.6 million for the third fiscal quarter ended March 31, 2022. Total Revenues-Net for the nine-month period ended March 31, 2023 was $72.9 million as compared to $72.8 million for the nine-month period ended March 31, 2022.Income From Operations for the third fiscal quarter ended March 31, 2023 decreased 26% to $4.2 million as compared to $5.6 million for the third fiscal quarter ended March 31, 2022. Income From Operations for the nine-month period ended March 31, 2023 decreased 31% to $12.3 million as compared to $17.9 million for the nine-month period ended March 31, 2022.Net Income for the third fiscal quarter ended March 31, 2023 decreased 37% to $4.5 million as compared to $3.3 million for the quarter ended March 31, 2022. Net Income for the nine-month period ended March 31, 2023 decreased 27% to $9.9 million as compared to $13.6 million for the nine-month period ended March 31, 2022.Diluted Net Income Per Common Share Available to Common Stockholders increased 72% to $0.55 for the third fiscal quarter ended March 31, 2023 as compared to $0.32 for the third fiscal quarter ended March 31, 2022. Diluted Net Income Per Common Share Available to Common Stockholders for the nine-month period ended March 31, 2023 decreased 19% to $1.16 as compared to $1.43 for the nine-month period ended March 31, 2022. Total Costs and Expenses were $21.3 million for the third fiscal quarter ended March 31, 2023 and were $18.9 million for the third fiscal quarter ended March 31, 2022. Total Costs and Expenses for the nine-month period ended March 31, 2023 were $60.6 million and for the nine-month period ended March 31, 2022 were $54.9 million.Balance Sheet ItemsTotal Cash and Cash Equivalents and Short Term Investments at March 31, 2023 were $49.7 million as compared to the $48.8 million at June 30, 2022. Total Assets at March 31, 2023 and June 30, 2022 were $199.3 million. Total Liabilities at March 31, 2023 were $48.7 million as compared to $53.1 million at June 30, 2022. The ratio of Total Assets / Total Liabilities increased 9% to 4.1 at March 31, 2023 as compared to 3.8 at June 30, 2022.Total Current Assets at March 31, 2023 were $122.0 million as compared to $118.7 million at June 30, 2022. Total Current Liabilities at March 31, 2023 were $13.9 million as compared to $16.7 million at June 30, 2022. Total Stockholders Equity at March 31, 2023 was $150.6 million as compared to $146.2 million at June 30, 2022. The Current Ratio (Current Assets / Current Liabilities) increased 24% to 8.8 as compared to 7.1 at June 30, 2022.Working Capital increased 6% to $108.1 million at March 31, 2023 as compared to $101.9 million at June 30, 2022.Net Book Value per Common Share increased 6% to $22.79 at March 31, 2023 as compared to $21.59 at March 31, 2022, one year ago. Cash Flow Statement ItemNet Cash Provided by Operating Activities was $10.1 million for the nine-month periods ended March 31, 2023 and March 31, 2022. Management DiscussionTimothy Damadian, Chairman, President and CEO of FONAR, said: "Scan volume at HMCA-managed sites for the nine-month period ending on March 31, 2023 was 139,339, which was down 1% in comparison to 140,650 scans in the corresponding period of the previous year. This was largely due to initial and then lingering COVID-related staffing shortages felt throughout the healthcare industry. In our case, the shortage has been especially acute among MRI technologists." "Thanks to innovative recruitment efforts, I'm pleased to report that we have been successful in filling many of the technologist vacancies, enabling most sites to return to their usual business hours, which is clearly reflected in the third quarter: Scan volume for the 3-month period ending on March 31, 2023 was 49,451, setting a new record number for the number of scans completed in any 3-month period in the history of the Company. The third quarter scan volume was 8.9% higher than that of the previous quarter (45,412) and 7.1% higher than the scan volume of the corresponding period of the previous fiscal year (46,190)." Mr. Damadian continued, "The COVID pandemic was certainly the most destructive business disruption in HMCA's history. We felt the worst of it in the last quarter of Fiscal 2020 and have been dealing with it ever since. So we are grateful that in spite of the pandemic, the Company has been able to maintain positive trends in both revenue and profit. SG&A and net income continue to be affected by management fee reserves, as well as tax adjustments resulting from a very detailed analysis of FONAR's tax loss carry-forwards." "I would also like to report that pursuant to our September 13, 2022 announcement of a FONAR stock repurchase plan of up to $9 million, we have to date repurchased 79,540 shares at a cost of approximately $1.35 million.""As of March 31, 2023, HMCA was managing 41 MRI scanners, 24 in New York and 17 in Florida. In the fourth quarter of Fiscal 2023, we expect to be managing a brand new facility in the southern part of the Bronx, New York, which will be an ideal extension of the existing site located in the central part of that borough." "I am grateful to our management team and all the HMCA employees who have been working diligently to get our COVID-impaired sites back on track, planning, preparing and working towards growth, and keeping the Company profitable."About FONARFONAR, the Inventor of MR Scanning™, is located in Melville, NY, was incorporated in 1978, and is the first, oldest and most experienced MRI Company in the industry. FONAR introduced the world's first commercial MRI in 1980, and went public in 1981. FONAR's signature product is the FONAR UPRIGHT® Multi-Position™ MRI (also known as the Stand-Up® MRI), the only whole-body MRI that performs Position™ Imaging (pMRI™) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The FONAR UPRIGHT® MRI often detects patient problems that other MRI scanners cannot because they are lie-down and "weightless-only" scanners. The patient-friendly UPRIGHT® MRI has a near-zero patient claustrophobic rejection rate. As a FONAR customer states, "If the patient is claustrophobic in this scanner, they'll be claustrophobic in my parking lot." Approximately 85% of patients are scanned sitting while watching TV.FONAR has new works-in-progress technology for visualizing and quantifying the cerebral hydraulics of the central nervous system, the flow of cerebrospinal fluid (CSF), which circulates throughout the brain and vertebral column at the rate of 32 quarts per day. This imaging and quantifying of the dynamics of this vital life-sustaining physiology of the body's neurologic system has been made possible first by FONAR's introduction of the MRI and now by this latest works-in-progress method for quantifying CSF in all the normal positions of the body, particularly in its upright flow against gravity. Patients with whiplash or other neck injuries are among those who will benefit from this new understanding. FONAR's primary source of income and growth is attributable to its wholly-owned diagnostic imaging management subsidiary, Health Management Company of America (HMCA) www.hmca.com.FONAR's substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging of all the gravity sensitive regions of the human anatomy, especially the brain, extremities and spine. It includes its newest technology for measuring the Upright cerebral hydraulics of the central nervous system. FONAR's UPRIGHT® Multi-Position™ MRI is the only scanner licensed under these patents.UPRIGHT®, STAND-UP® and Open Sky MRI® are registered trademarks and Multi-Position™, Upright Radiology™, The Inventor of MR Scanning™, The Proof is in the Picture™, True Flow™, pMRI™, Full Range of Motion™, Spondylography™, Dynamic™, Spondylometry™, FONAR 3600™, CSP™, and Landscape™ are trademarks of Fonar Corporation.This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)ASSETSMarch 31, 2023 June 30, 2022 Current Assets: Cash and cash equivalents$49,640 $48,723 Short term investments32 32 Accounts receivable - net3,720 4,336 Accounts receivable - related party30 - Medical receivable - net20,460 20,109 Management and other fees receivable - net35,201 33,419Management and other fees receivable - related medical practices - net9,088 8,603 Inventories2,661 2,360 Prepaid expenses and other current assets1,166 1,104 Total Current Assets121,998 118,686 Accounts receivable - long term1,003 1,872 Deferred income tax asset - net10,911 12,843 Property and equipment - net22,775 22,282 Right-of-use Asset - operating lease33,581 34,232 Right-of-use Asset - financing lease779 928 Goodwill4,269 4,269 Other intangible assets - net3,494 3,704 Other assets526 526 Total Assets$199,336 $199,342 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITYMarch 31, 2023 June 30, 2022 Current Liabilities: Current portion of long-term debt$43 $40Accounts payable1,719 1,552Other current liabilities3,496 6,417 Unearned revenue on service contracts3,615 4,289 Unearned revenue on service contracts - related party28 - Operating lease liability - current portion3,981 3,880 Financing lease liability - current portion217 210Customer deposits826 361Total Current Liabilities13,925 16,749 Long-Term Liabilities: Unearned revenue on service contracts1,015 1,857 Deferred income tax liability216 216 Due to related medical practices93 93 Operating lease liability - net of current portion32,630 33,091 Financing lease liability - net of current portion657 838 Long-term debt less current portion126 155 Other liabilities57 107 Total Long-Term Liabilities34,794 36,357 Total Liabilities48,719 53,106 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITY (Continued)STOCKHOLDERS' EQUITY:March 31, 2023 June 30, 2022Class A non-voting preferred stock $.0001 par value; 453 shares authorized at March 31, 2023 and June 30, 2022, 313 issued and outstanding at March 31, 2023 and June 30, 2022$- $-Preferred stock $.001 par value; 567 shares authorized at March 31, 2023 and June 30, 2022, issued and outstanding - none- -Common Stock $.0001 par value; 8,500 shares authorized at March 31, 2023 and June 30, 2022, 6,607 and 6,566 issued at March 31, 2023 and June 30, 2022, respectively 6,538 and 6,554 outstanding at March 31, 2023 and June 30, 2022, respectively1 1Class B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at March 31, 2023 and June 30, 2022,146 issued and outstanding at March 31, 2023 and June 30, 2022- - Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at March 31, 2023 and June 30, 2022, 383 issued and outstanding at March 31, 2023 and June 30, 2022- - Paid-in capital in excess of par value184,130 184,531 Accumulated deficit(25,428) (33,567)Treasury stock, at cost - 69 shares of common stock at March 31, 2023 and 12 shares of common stock at June 30, 2022(1,522) (675) Total Fonar Corporation's Stockholders' Equity157,181 150,290 Noncontrolling interests(6,564) (4,054) Total Stockholders' Equity150,617 146,236 Total Liabilities and Stockholders' Equity$199,336 $199,342 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts and shares in thousands, except per share amounts) (UNAUDITED)FOR THE THREE MONTHSENDED MARCH 31,REVENUES2023 2022Patient fee revenue - net of contractual allowances and discounts$8,188 $7,641Product sales - net25 135Service and repair fees - net1,831 1,876Service and repair fees - related parties - net28 28Management and other fees - net12,375 11,904Management and other fees - related medical practices - net2,975 2,987Total Revenues - Net25,422 24,571COSTS AND EXPENSES Costs related to patient fee revenue4,056 3,306Costs related to product sales196 53Costs related to service and repair fees801 747Costs related to service and repair fees - related parties12 11Costs related to management and other fees7,157 6,696Costs related to management and other fees - related medical practices1,455 1,698Research and development435 354Selling, general and administrative7,143 6,068Total Costs and Expenses21,255 18,933Income From Operations4,167 5,638Other Expense(6) -Interest (Expense) Income(15) 31Investment Income356 58Income Before Provision for Income Taxes and Noncontrolling Interests4,502 5,727Provision for Income Taxes(17) (2,465)Net Income4,485 3,262Net Income - Noncontrolling Interests(625) (971)Net Income - Attributable to FONAR$3,860 $2,291Net Income Available to Common Stockholders$3,627 $2,153Net Income Available to Class A Non-Voting Preferred Stockholders$174 $103Net Income Available to Class C Common Stockholders$59 $35Basic Net Income Per Common Share Available to Common Stockholders$0.56 $0.33Diluted Net Income Per Common Share Available to Common Stockholders$0.55 $0.32Basic and Diluted Income Per Share - Class C Common$0.16 $0.09Weighted Average Basic Shares Outstanding - Common Stockholders6,481 6,554Weighted Average Diluted Shares Outstanding - Common Stockholders6,609 6,682Weighted Average Basic and Diluted Shares Outstanding - Class C Common383 383 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts and shares in thousands, except per share amounts) (UNAUDITED)FOR THE NINE MONTHSENDED MARCH 31,REVENUES2023 2022Patient fee revenue - net of contractual allowances and discounts$21,393 $21,935Product sales - net225 481Service and repair fees - net5,489 5,720Service and repair fees - related parties - net83 83Management and other fees - net36,717 35,985Management and other fees - related medical practices - net8,962 8,576Total Revenues - Net72,869 72,780COSTS AND EXPENSES Costs related to patient fee revenue11,879 9,785Costs related to product sales580 352Costs related to service and repair fees2,241 2,190Costs related to service and repair fees - related parties34 32Costs related to management and other fees20,281 20,497Costs related to management and other fees - related medical practices4,345 5,024Research and development1,126 1,109Selling, general and administrative20,074 15,928Total Costs and Expenses60,560 54,917Income From Operations12,309 17,863Other (Expense) Income(203) 858Interest Expense(41) (9)Investment Income770 180Income Before Provision for Income Taxes and Noncontrolling Interests12,835 18,892Provision for Income Taxes(2,889 (5,311)Net Income9,946 13,581Net Income - Noncontrolling Interests(1,807) (3,383)Net Income - Attributable to FONAR$8,139 $10,198Net Income Available to Common Stockholders$7,647 $9,583Net Income Available to Class A Non-Voting Preferred Stockholders$367 $458Net Income Available to Class C Common Stockholders$125 $157Basic Net Income Per Common Share Available to Common Stockholders$1.18 $1.46Diluted Net Income Per Common Share Available to Common Stockholders$1.16 $1.43Basic and Diluted Income Per Share - Class C Common$0.33 $0.41Weighted Average Basic Shares Outstanding - Common Stockholders6,487 6,554Weighted Average Diluted Shares Outstanding - Common Stockholders6,615 6,682Weighted Average Basic and Diluted Shares Outstanding - Class C Common383 383 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)FOR THE NINE MONTHS ENDED MARCH 31,2023 2022Cash Flows from Operating Activities: Net income$9,946 $13,581 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization3,357 3,543Amortization on right-of-use assets3,306 2,953Provision for bad debts4,441 2,150Deferred income tax - net1,931 3,484Gain on forgiveness of PPP loan- (701)(Increase) decrease in operating assets, net: Accounts, medical and management fee receivable(s)(5,604) (4,950)Notes receivable11 32Contract assets- (15)Inventories(301) (705)Prepaid expenses and other current assets(73) 112Other assets- 132Increase (decrease) in operating liabilities, net: Accounts payable168 (855)Other current liabilities(4,409) (5,480)Operating lease liabilities(2,865) (2,579)Financing lease liabilities(175) (151)Customer deposits465 (370)Contract liabilities- (15)Other liabilities(49) (49)Net cash provided by operating activities10,149 10,117 Cash Flows from Investing Activities: Purchases of property and equipment(3,553) (3,807) Purchase of noncontrolling interests- (546)Cost of patents(87) (60)Net cash used in investing activities(3,640) (4,413) Cash Flows from Financing Activities: Repayment of borrowings and capital lease obligations(26) (23) Purchase of treasury stock(1,249) - Distributions to noncontrolling interests(4,317) (4,131)Net cash used in financing activities(5,592) (4,154) Net Increase in Cash and Cash Equivalents917 1,550Cash and Cash Equivalents - Beginning of Period48,723 44,460Cash and Cash Equivalents - End of Period$49,640 $46,010 Contact: Daniel CulverDirector of CommunicationsE-mail: investor@fonar.comwww.fonar.comThe Inventor of MR Scanning™An ISO 9001 CompanyMelville, New York 11747Phone: (631) 694-2929Fax: (631) 390-1772To view the source version of this press release, please visit https://www.newsfilecorp.com/release/166021
Total MRI scan volume at the HMCA-managed sites increased 7% to 49,451 scans for the quarter ended March 31, 2023 versus the corresponding quarter one year earlier. For the nine-month period ended March 31, 2023, 139,339 scans were performed as compared to 140,650 for the corresponding nine-month period one year ago.Net Income increased 37% to $4.5 million for the quarter ended March 31, 2023 and decreased 27% to $9.9 million for the nine-month period ended March 31, 2023. Diluted Net Income Per Common Share Available to Common Stockholders increased 72% to $0.55 for the third fiscal quarter ended March 31, 2023 and decreased 19% to $1.16 for the nine-month period ended March 31, 2023. Total Revenues-Net increased 3% to $25.4 million for the quarter ended March 31, 2023 as compared to the corresponding quarter one year ago. Total Revenues-Net were $72.9 million for the nine-month period ended March 31, 2023, approximately the same as the corresponding nine-month period one year ago. Total Cash, Cash Equivalents and Short Term Investments increased 2% to $49.7 million at March 31, 2023 as compared to $48.8 million at June 30, 2022. Net Book Value per Common Share increased 6% to $22.79 at March 31, 2023 as compared to $21.59 at March 31, 2022, one year ago. Melville, New York--(Newsfile Corp. - May 15, 2023) - FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning™, reported today its financial results for the 3rd fiscal 2023 quarter and nine-month period ended March 31, 2023. FONAR's primary source of income and growth is attributable to its diagnostic imaging management subsidiary, Health Management Company of America (HMCA). In 2009, HMCA managed 9 MRI scanners. Currently, HMCA manages 41 MRI scanners.Operating ResultsTotal Revenues-Net for the third fiscal quarter ended March 31, 2023 increased 3% to $25.4 million as compared to $24.6 million for the third fiscal quarter ended March 31, 2022. Total Revenues-Net for the nine-month period ended March 31, 2023 was $72.9 million as compared to $72.8 million for the nine-month period ended March 31, 2022.Income From Operations for the third fiscal quarter ended March 31, 2023 decreased 26% to $4.2 million as compared to $5.6 million for the third fiscal quarter ended March 31, 2022. Income From Operations for the nine-month period ended March 31, 2023 decreased 31% to $12.3 million as compared to $17.9 million for the nine-month period ended March 31, 2022.Net Income for the third fiscal quarter ended March 31, 2023 decreased 37% to $4.5 million as compared to $3.3 million for the quarter ended March 31, 2022. Net Income for the nine-month period ended March 31, 2023 decreased 27% to $9.9 million as compared to $13.6 million for the nine-month period ended March 31, 2022.Diluted Net Income Per Common Share Available to Common Stockholders increased 72% to $0.55 for the third fiscal quarter ended March 31, 2023 as compared to $0.32 for the third fiscal quarter ended March 31, 2022. Diluted Net Income Per Common Share Available to Common Stockholders for the nine-month period ended March 31, 2023 decreased 19% to $1.16 as compared to $1.43 for the nine-month period ended March 31, 2022. Total Costs and Expenses were $21.3 million for the third fiscal quarter ended March 31, 2023 and were $18.9 million for the third fiscal quarter ended March 31, 2022. Total Costs and Expenses for the nine-month period ended March 31, 2023 were $60.6 million and for the nine-month period ended March 31, 2022 were $54.9 million.Balance Sheet ItemsTotal Cash and Cash Equivalents and Short Term Investments at March 31, 2023 were $49.7 million as compared to the $48.8 million at June 30, 2022. Total Assets at March 31, 2023 and June 30, 2022 were $199.3 million. Total Liabilities at March 31, 2023 were $48.7 million as compared to $53.1 million at June 30, 2022. The ratio of Total Assets / Total Liabilities increased 9% to 4.1 at March 31, 2023 as compared to 3.8 at June 30, 2022.Total Current Assets at March 31, 2023 were $122.0 million as compared to $118.7 million at June 30, 2022. Total Current Liabilities at March 31, 2023 were $13.9 million as compared to $16.7 million at June 30, 2022. Total Stockholders Equity at March 31, 2023 was $150.6 million as compared to $146.2 million at June 30, 2022. The Current Ratio (Current Assets / Current Liabilities) increased 24% to 8.8 as compared to 7.1 at June 30, 2022.Working Capital increased 6% to $108.1 million at March 31, 2023 as compared to $101.9 million at June 30, 2022.Net Book Value per Common Share increased 6% to $22.79 at March 31, 2023 as compared to $21.59 at March 31, 2022, one year ago. Cash Flow Statement ItemNet Cash Provided by Operating Activities was $10.1 million for the nine-month periods ended March 31, 2023 and March 31, 2022. Management DiscussionTimothy Damadian, Chairman, President and CEO of FONAR, said: "Scan volume at HMCA-managed sites for the nine-month period ending on March 31, 2023 was 139,339, which was down 1% in comparison to 140,650 scans in the corresponding period of the previous year. This was largely due to initial and then lingering COVID-related staffing shortages felt throughout the healthcare industry. In our case, the shortage has been especially acute among MRI technologists." "Thanks to innovative recruitment efforts, I'm pleased to report that we have been successful in filling many of the technologist vacancies, enabling most sites to return to their usual business hours, which is clearly reflected in the third quarter: Scan volume for the 3-month period ending on March 31, 2023 was 49,451, setting a new record number for the number of scans completed in any 3-month period in the history of the Company. The third quarter scan volume was 8.9% higher than that of the previous quarter (45,412) and 7.1% higher than the scan volume of the corresponding period of the previous fiscal year (46,190)." Mr. Damadian continued, "The COVID pandemic was certainly the most destructive business disruption in HMCA's history. We felt the worst of it in the last quarter of Fiscal 2020 and have been dealing with it ever since. So we are grateful that in spite of the pandemic, the Company has been able to maintain positive trends in both revenue and profit. SG&A and net income continue to be affected by management fee reserves, as well as tax adjustments resulting from a very detailed analysis of FONAR's tax loss carry-forwards." "I would also like to report that pursuant to our September 13, 2022 announcement of a FONAR stock repurchase plan of up to $9 million, we have to date repurchased 79,540 shares at a cost of approximately $1.35 million.""As of March 31, 2023, HMCA was managing 41 MRI scanners, 24 in New York and 17 in Florida. In the fourth quarter of Fiscal 2023, we expect to be managing a brand new facility in the southern part of the Bronx, New York, which will be an ideal extension of the existing site located in the central part of that borough." "I am grateful to our management team and all the HMCA employees who have been working diligently to get our COVID-impaired sites back on track, planning, preparing and working towards growth, and keeping the Company profitable."About FONARFONAR, the Inventor of MR Scanning™, is located in Melville, NY, was incorporated in 1978, and is the first, oldest and most experienced MRI Company in the industry. FONAR introduced the world's first commercial MRI in 1980, and went public in 1981. FONAR's signature product is the FONAR UPRIGHT® Multi-Position™ MRI (also known as the Stand-Up® MRI), the only whole-body MRI that performs Position™ Imaging (pMRI™) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The FONAR UPRIGHT® MRI often detects patient problems that other MRI scanners cannot because they are lie-down and "weightless-only" scanners. The patient-friendly UPRIGHT® MRI has a near-zero patient claustrophobic rejection rate. As a FONAR customer states, "If the patient is claustrophobic in this scanner, they'll be claustrophobic in my parking lot." Approximately 85% of patients are scanned sitting while watching TV.FONAR has new works-in-progress technology for visualizing and quantifying the cerebral hydraulics of the central nervous system, the flow of cerebrospinal fluid (CSF), which circulates throughout the brain and vertebral column at the rate of 32 quarts per day. This imaging and quantifying of the dynamics of this vital life-sustaining physiology of the body's neurologic system has been made possible first by FONAR's introduction of the MRI and now by this latest works-in-progress method for quantifying CSF in all the normal positions of the body, particularly in its upright flow against gravity. Patients with whiplash or other neck injuries are among those who will benefit from this new understanding. FONAR's primary source of income and growth is attributable to its wholly-owned diagnostic imaging management subsidiary, Health Management Company of America (HMCA) www.hmca.com.FONAR's substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging of all the gravity sensitive regions of the human anatomy, especially the brain, extremities and spine. It includes its newest technology for measuring the Upright cerebral hydraulics of the central nervous system. FONAR's UPRIGHT® Multi-Position™ MRI is the only scanner licensed under these patents.UPRIGHT®, STAND-UP® and Open Sky MRI® are registered trademarks and Multi-Position™, Upright Radiology™, The Inventor of MR Scanning™, The Proof is in the Picture™, True Flow™, pMRI™, Full Range of Motion™, Spondylography™, Dynamic™, Spondylometry™, FONAR 3600™, CSP™, and Landscape™ are trademarks of Fonar Corporation.This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)ASSETSMarch 31, 2023 June 30, 2022 Current Assets: Cash and cash equivalents$49,640 $48,723 Short term investments32 32 Accounts receivable - net3,720 4,336 Accounts receivable - related party30 - Medical receivable - net20,460 20,109 Management and other fees receivable - net35,201 33,419Management and other fees receivable - related medical practices - net9,088 8,603 Inventories2,661 2,360 Prepaid expenses and other current assets1,166 1,104 Total Current Assets121,998 118,686 Accounts receivable - long term1,003 1,872 Deferred income tax asset - net10,911 12,843 Property and equipment - net22,775 22,282 Right-of-use Asset - operating lease33,581 34,232 Right-of-use Asset - financing lease779 928 Goodwill4,269 4,269 Other intangible assets - net3,494 3,704 Other assets526 526 Total Assets$199,336 $199,342 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITYMarch 31, 2023 June 30, 2022 Current Liabilities: Current portion of long-term debt$43 $40Accounts payable1,719 1,552Other current liabilities3,496 6,417 Unearned revenue on service contracts3,615 4,289 Unearned revenue on service contracts - related party28 - Operating lease liability - current portion3,981 3,880 Financing lease liability - current portion217 210Customer deposits826 361Total Current Liabilities13,925 16,749 Long-Term Liabilities: Unearned revenue on service contracts1,015 1,857 Deferred income tax liability216 216 Due to related medical practices93 93 Operating lease liability - net of current portion32,630 33,091 Financing lease liability - net of current portion657 838 Long-term debt less current portion126 155 Other liabilities57 107 Total Long-Term Liabilities34,794 36,357 Total Liabilities48,719 53,106 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITY (Continued)STOCKHOLDERS' EQUITY:March 31, 2023 June 30, 2022Class A non-voting preferred stock $.0001 par value; 453 shares authorized at March 31, 2023 and June 30, 2022, 313 issued and outstanding at March 31, 2023 and June 30, 2022$- $-Preferred stock $.001 par value; 567 shares authorized at March 31, 2023 and June 30, 2022, issued and outstanding - none- -Common Stock $.0001 par value; 8,500 shares authorized at March 31, 2023 and June 30, 2022, 6,607 and 6,566 issued at March 31, 2023 and June 30, 2022, respectively 6,538 and 6,554 outstanding at March 31, 2023 and June 30, 2022, respectively1 1Class B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at March 31, 2023 and June 30, 2022,146 issued and outstanding at March 31, 2023 and June 30, 2022- - Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at March 31, 2023 and June 30, 2022, 383 issued and outstanding at March 31, 2023 and June 30, 2022- - Paid-in capital in excess of par value184,130 184,531 Accumulated deficit(25,428) (33,567)Treasury stock, at cost - 69 shares of common stock at March 31, 2023 and 12 shares of common stock at June 30, 2022(1,522) (675) Total Fonar Corporation's Stockholders' Equity157,181 150,290 Noncontrolling interests(6,564) (4,054) Total Stockholders' Equity150,617 146,236 Total Liabilities and Stockholders' Equity$199,336 $199,342 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts and shares in thousands, except per share amounts) (UNAUDITED)FOR THE THREE MONTHSENDED MARCH 31,REVENUES2023 2022Patient fee revenue - net of contractual allowances and discounts$8,188 $7,641Product sales - net25 135Service and repair fees - net1,831 1,876Service and repair fees - related parties - net28 28Management and other fees - net12,375 11,904Management and other fees - related medical practices - net2,975 2,987Total Revenues - Net25,422 24,571COSTS AND EXPENSES Costs related to patient fee revenue4,056 3,306Costs related to product sales196 53Costs related to service and repair fees801 747Costs related to service and repair fees - related parties12 11Costs related to management and other fees7,157 6,696Costs related to management and other fees - related medical practices1,455 1,698Research and development435 354Selling, general and administrative7,143 6,068Total Costs and Expenses21,255 18,933Income From Operations4,167 5,638Other Expense(6) -Interest (Expense) Income(15) 31Investment Income356 58Income Before Provision for Income Taxes and Noncontrolling Interests4,502 5,727Provision for Income Taxes(17) (2,465)Net Income4,485 3,262Net Income - Noncontrolling Interests(625) (971)Net Income - Attributable to FONAR$3,860 $2,291Net Income Available to Common Stockholders$3,627 $2,153Net Income Available to Class A Non-Voting Preferred Stockholders$174 $103Net Income Available to Class C Common Stockholders$59 $35Basic Net Income Per Common Share Available to Common Stockholders$0.56 $0.33Diluted Net Income Per Common Share Available to Common Stockholders$0.55 $0.32Basic and Diluted Income Per Share - Class C Common$0.16 $0.09Weighted Average Basic Shares Outstanding - Common Stockholders6,481 6,554Weighted Average Diluted Shares Outstanding - Common Stockholders6,609 6,682Weighted Average Basic and Diluted Shares Outstanding - Class C Common383 383 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts and shares in thousands, except per share amounts) (UNAUDITED)FOR THE NINE MONTHSENDED MARCH 31,REVENUES2023 2022Patient fee revenue - net of contractual allowances and discounts$21,393 $21,935Product sales - net225 481Service and repair fees - net5,489 5,720Service and repair fees - related parties - net83 83Management and other fees - net36,717 35,985Management and other fees - related medical practices - net8,962 8,576Total Revenues - Net72,869 72,780COSTS AND EXPENSES Costs related to patient fee revenue11,879 9,785Costs related to product sales580 352Costs related to service and repair fees2,241 2,190Costs related to service and repair fees - related parties34 32Costs related to management and other fees20,281 20,497Costs related to management and other fees - related medical practices4,345 5,024Research and development1,126 1,109Selling, general and administrative20,074 15,928Total Costs and Expenses60,560 54,917Income From Operations12,309 17,863Other (Expense) Income(203) 858Interest Expense(41) (9)Investment Income770 180Income Before Provision for Income Taxes and Noncontrolling Interests12,835 18,892Provision for Income Taxes(2,889 (5,311)Net Income9,946 13,581Net Income - Noncontrolling Interests(1,807) (3,383)Net Income - Attributable to FONAR$8,139 $10,198Net Income Available to Common Stockholders$7,647 $9,583Net Income Available to Class A Non-Voting Preferred Stockholders$367 $458Net Income Available to Class C Common Stockholders$125 $157Basic Net Income Per Common Share Available to Common Stockholders$1.18 $1.46Diluted Net Income Per Common Share Available to Common Stockholders$1.16 $1.43Basic and Diluted Income Per Share - Class C Common$0.33 $0.41Weighted Average Basic Shares Outstanding - Common Stockholders6,487 6,554Weighted Average Diluted Shares Outstanding - Common Stockholders6,615 6,682Weighted Average Basic and Diluted Shares Outstanding - Class C Common383 383 FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts and shares in thousands, except per share amounts) (UNAUDITED)FOR THE NINE MONTHS ENDED MARCH 31,2023 2022Cash Flows from Operating Activities: Net income$9,946 $13,581 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization3,357 3,543Amortization on right-of-use assets3,306 2,953Provision for bad debts4,441 2,150Deferred income tax - net1,931 3,484Gain on forgiveness of PPP loan- (701)(Increase) decrease in operating assets, net: Accounts, medical and management fee receivable(s)(5,604) (4,950)Notes receivable11 32Contract assets- (15)Inventories(301) (705)Prepaid expenses and other current assets(73) 112Other assets- 132Increase (decrease) in operating liabilities, net: Accounts payable168 (855)Other current liabilities(4,409) (5,480)Operating lease liabilities(2,865) (2,579)Financing lease liabilities(175) (151)Customer deposits465 (370)Contract liabilities- (15)Other liabilities(49) (49)Net cash provided by operating activities10,149 10,117 Cash Flows from Investing Activities: Purchases of property and equipment(3,553) (3,807) Purchase of noncontrolling interests- (546)Cost of patents(87) (60)Net cash used in investing activities(3,640) (4,413) Cash Flows from Financing Activities: Repayment of borrowings and capital lease obligations(26) (23) Purchase of treasury stock(1,249) - Distributions to noncontrolling interests(4,317) (4,131)Net cash used in financing activities(5,592) (4,154) Net Increase in Cash and Cash Equivalents917 1,550Cash and Cash Equivalents - Beginning of Period48,723 44,460Cash and Cash Equivalents - End of Period$49,640 $46,010 Contact: Daniel CulverDirector of CommunicationsE-mail: investor@fonar.comwww.fonar.comThe Inventor of MR Scanning™An ISO 9001 CompanyMelville, New York 11747Phone: (631) 694-2929Fax: (631) 390-1772To view the source version of this press release, please visit https://www.newsfilecorp.com/release/166021