Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Fonar Announces 3rd Quarter and Nine Months Results for Fiscal 2021; Income Increases 125% By: Newsfile May 13, 2021 at 07:30 AM EDT Net Income increased 125% to $4.3 million for the quarter ended March 31, 2021 as compared to the corresponding quarter one year ago. Income from Operations increased 58% to $4.1 million for the quarter ended March 31, 2021, as compared to the corresponding quarter one year ago. Diluted Net Income per Common Share Available to Common Stockholders increased 200% to $0.54 for the quarter ended March 31, 2021 as compared to the corresponding quarter one year ago. Cash and Cash Equivalents increased 11% to $40.8 million at March 31, 2021 as compared to the year-end, June 30, 2020.Total Revenues-Net increased 6% to $23.1 million for the quarter ended March 31, 2021, versus the corresponding quarter one year earlier.COVID-19 drastically affected imaging center scan volumes during this past year. However, total scan volume for quarter ended March 31, 2021 was 44,515, about the same as is was in the corresponding quarter one year ago. FONAR's subsidiary HMCA now has 39 MRI scanners under its management as compared to 36 scanners one year ago.Net Book Value per common share increased 7% to $20.37 at March 31, 2021 as compared to the corresponding quarter one year ago.Melville, New York--(Newsfile Corp. - May 13, 2021) - FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning™, reported today its financial results for the 3rd Fiscal Quarter and Nine Months period ended March 31, 2021. FONAR's primary source of income and growth is attributable to its diagnostic imaging management subsidiary, Health Management Company of America (HMCA). Operating ResultsTotal Revenues-Net increased 6% to $23.1 million for the third fiscal quarter ended March 31, 2021 as compared to $21.7 million for the third fiscal quarter ended March 31, 2020. Total Revenues-Net for the nine-month period ended March 31, 2021 were $65.2 million as compared to $64.9 million for the nine-month period ended March 31, 2020.Income from Operations increased 58% to $4.1 million for the third fiscal quarter ended March 31, 2021 as compared to $2.6 million for the third fiscal quarter ended March 31, 2020. Income from Operations for the nine-month period ended March 31, 2021 was $13.3 million as compared to $13.1 million for the nine-month period ended March 31, 2020.Net Income increased 125% to $4.3 million for the third fiscal quarter ended March 31, 2021 as compared to $1.9 million for the third fiscal quarter ended March 31, 2020. Net Income for the nine-month period ended March 31, 2021 was $11.5 million as compared to $10.6 million for the nine-month period ended March 31, 2020.Diluted Net Income Per Common Share Available to Common Shareholders increased 200% to $0.54 for the third fiscal quarter ended March 31, 2021 as compared to $0.18 for the third fiscal quarter ended March 31, 2020. Diluted Net Income Per Common Share Available to Common Shareholders, for the nine-month period ended March 31, 2021 increased 23% to $1.35 as compared to $1.10 for the nine-month period ended March 31, 2020.Total Costs and Expenses were $19.0 million for the third fiscal quarter ended March 31, 2021 and March 31, 2020. Total Costs and Expenses for the nine-month period ended March 31, 2021 was $52.0 million and were $51.8 million for the nine-month period ended March 31, 2020.Selling, general & administrative expenses (SG&A) decreased 15% to $6.1 million for the quarter ended March 31, 2021 as compared to $7.2 million for the quarter ended March 31, 2020. SG&A increased 7% to $16.8 million for the nine month period ended March 31, 2021 as compared to $15.7 million for the nine period ended March 31, 2020. Balance Sheet ItemsTotal Cash and Cash Equivalents and Short Term Investments at March 31, 2021 increased 11% to $40.8 million as compared to the $36.8 million at June 30, 2020. Total Assets at March 31, 2021 were $185.3 million as compared to $180.3 million at June 30, 2020. Total Liabilities at March 31, 2021 were $50.5 million as compared to $54.0 million at June 30, 2020. The ratio of Total Assets / Total Liabilities increased 10% to 3.7 at March 31, 2021 as compared to 3.3 at June 30, 2020.Total Current Assets at March 31, 2021 were $103.6 million as compared to $95.9 million at June 30, 2020. Total Current Liabilities at March 31, 2021 were $17.1 million as compared to $18.7 million at June 30, 2020. Working Capital increased 12% to $86.5 million at March 31, 2021 as compared to $77.2 million at June 30, 2020.Net Book Value per Common Share increased 7% to $20.37 at March 31, 2021 as compared to $19.10 at March 31, 2020, one year ago. Cash Flow ItemOperating Cash Flow decreased 6% to $13.1 million for the nine month period ended March 31, 2021 as compared to $13.9 million for the nine month period ended March 31, 2020. Significant EventOn March 9, 2021, FONAR rang the Nasdaq Stock Market Closing Bell, to celebrate the 50th birthday of MRI. Fifty years ago, in March 1971, the widely-read journal Science published "Tumor Detection by Nuclear Magnetic Resonance" by FONAR founder and chairman Dr. Raymond V. Damadian. This journal article explained Dr. Damadian's discovery that there is a marked difference in the relaxation time of the NMR (MRI) signals between normal and cancerous tissues of the same type, as well as between different types of normal tissues.Soon scientists around the world began repeating his experiment to learn for themselves about his discovery. They often cited his works in their own peer reviewed publications and Dr. Damadian's publication in Science is often referred to as the beginning of MRI.To view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/7879/83831_1b66f7a5d43a8931_001full.jpgDr. Damadian said, "I got my first idea for MRI in 1969, and in 1970 made the discovery that is the basis for the making of every MRI image ever produced and the foundation of the MRI industry. The discovery resulted in the generation of the pronounced pixel contrast that was deficient in traditional medical imaging technology (X-ray, CT, 4%) and was needed for adequate visualization of the body's vital organs and assessment of their well-being. The discovery raised the pixel contrast of medical imaging, and the pronounced elaboration of image detail it generates to 131%." As reported in edubilla.com: "But without this discovery of the profound sensitivity of the relaxation time to different tissue types and malignant tissue THERE WOULD BE NO PICTURE AT ALL."Dr. Damadian's discovery, as reported in Science 1971, soon led to the first patent application in MRI in 1972. On July 3, 1977 Dr. Damadian, with his two post doctorate students, Lawrence Minkoff, Ph.D., and Michael Goldsmith. Ph.D., made the world's first MRI scan on the first ever MRI scanner they built and named 'Indomitable.'Dr. Damadian began FONAR, the world's first dedicated MRI Company in 1978, and the Company installed the world's first commercial MRI in 1980. In 1981 FONAR became a NASDAQ-listed company and 40 years later has delightedly marked the 50th anniversary of the birth of MRI by ringing the Nasdaq Stock Market Closing Bell.To view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/7879/83831_1b66f7a5d43a8931_002full.jpgManagement Discussion President and CEO Timothy R. Damadian commented on the performance of the Company's management subsidiary over the past year. "As of March 31, 2021, we completed twelve full months of operation under the cloud of the COVID-19 pandemic. In the first three of those twelve months, ending June 30, 2020, total scan volume at HMCA-managed sites was down by 42% compared to what is was in the corresponding period one year earlier. In the next three months, ending September 30, 2020, we were down by 12%. In the next three months, ending December 2020, we were down by 5%. Finally, in the last three months, ending March 31, 2021, we were down only 1%. It's been a remarkable recovery, thanks to the hard work of our management team, our site employees, and our headquarters' staff. "At the very end of March, we acquired a Stand-Up® MRI facility in Yonkers, New York, bringing the total number of HMCA-managed MRIs to 39. Physicians had been referring patients to this location for years, so we've been focused on preserving the existing business by continuing to provide the high quality service that they were accustomed to. By employing the marketing techniques and enhanced services that have made other HMCA-managed facilities successful, we expect to see substantial growth at this new location."Mr. Damadian concluded, "We have a very strong balance sheet. With Cash and Cash Equivalents at $40.8 million and relatively little debt, the Company's liquidity puts us in an excellent position to expand our network of HMCA-managed facilities through acquisitions or establishing de novo sites." Chairman of the Board, Raymond V. Damadian, M.D., said, "It's pleasing to see the Company continue to be profitable. Timothy has put together a highly competent management team that is doing a wonderful job. Since they took the reins in 2010, Total Revenues-Net have increased from $31.8 million in Fiscal Year 2010 to $85.6 million in Fiscal Year 2020, representing an effective annual growth rate of 10%. Dr. Damadian remarked, "The FONAR UPRIGHT® Multi-Position™ MRI continues to be a favorite scanner among patients and physicians. This is especially true when it comes to the spine and it is our experience that the FONAR UPRIGHT® Multi-Position™ MRI will often see pathology that is missed by recumbent-only MRI scanners. On the other hand, we have not heard of a recumbent scanner that has seen pathology in the spine that is missed by the FONAR UPRIGHT® Multi-Position™ MRI. The reason for this is simple. The UPRIGHT® MRI images patients in their full weight-bearing position that enables visualization of the spine subjected to its full normal weight load. The impact of the body's weight load on the spine's anatomy and existing pathology is not visualized in the recumbent-only position provided by the conventional MRI."Unfortunately, COVID-19 has delayed our R&D progress on MRI imaging of cerebrospinal fluid (CSF) flow and its impact on neurodegenerative diseases. Our research is focused on quantifying CSF flow and the velocity at which it navigates through the head, neck and spine. We've been able to quantify CSF flow from asymptomatic patients to assess quantitative degree to which CSF flow impairment is responsible for his (her) symptoms and the degree to which the patient's surgical or non-surgical CCJ treatment has restored the patient's critical brain and central nervous system's physiology to normal. We use the UPRIGHT® MRI to make cines (movies) of the fluid (CSF) as it flows up and down the neck, around the brain and up and down the spine. We are also hopeful that our research may lead to a new understanding of the role of CSF on neurodegenerative diseases, such as MS and Parkinson's disease."Dr. Damadian concluded, "Once the COVID-19 crisis is over and the economy returns to normal, there is every reason to believe that FONAR will significantly grow and prosper."About FONARFONAR, the Inventor of MR Scanning™, 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, "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 its 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 upright 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 cerebrospinal fluid (CSF) of the central nervous system. FONAR's UPRIGHT® Multi-Position™ MRI is the only scaner licensed under these patents.UPRIGHT® and STAND-UP® are registered trademarks. The Inventor of MR Scanning™, CSP™, Multi-Position™, UPRIGHT RADIOLOGY™, The Proof is in the Picture™, pMRI™, CSF Videography™ and Dynamic™, 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.Director of CommunicationsE-mail: investor@fonar.comwww.fonar.comThe Inventor of MR Scanning™An ISO 9001 CompanyMelville, New York 11747Phone: (631) 694-2929Fax: (631) 390-1772CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts and shares in thousands, except per share amounts)(UNAUDITED)ASSETS March 31, 2021 June 30, 2020 Current Assets: Cash and cash equivalents $ 40,809 $ 36,802 Short term investments 32 32 Accounts receivable - net 4,308 4,313 Accounts receivable - related party 42 6 Medical receivable - net 17,021 16,172 Management and other fees receivable - net 30,313 27,438 Management and other fees receivable - related medical practices - net 7,530 6,896 Inventories 1,971 1,649 Contract assets 218 153 Income tax receivable - 671 Prepaid expenses and other current assets 1,330 1,758 Total Current Assets 103,574 95,890 Accounts receivable 2,790 2,730 Deferred income tax asset 17,098 18,810 Property and equipment - net 22,133 21,364 Right-of-use Asset - operating lease 29,462 31,392 Right-of-use Asset - financing lease 1,177 1,326 Goodwill 4,269 3,985 Other intangible assets - net 4,090 4,109 Other assets 659 653 Total Assets $ 185,252 $ 180,259 CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts and shares in thousands, except per share amounts)(UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITY March 31, 2021 June 30, 2020 Current Liabilities: Current portion of long-term debt and capital leases $ 193 $ 108 Accounts payable 1,776 1,965 Other current liabilities 6,252 8,185 Unearned revenue on service contracts 4,121 4,105 Unearned revenue on service contracts - related party 28 - Operating lease liability - current portion 3,482 3,370 Financing lease liability - current portion 201 75 Customer deposits 1,038 855 Total Current Liabilities 17,091 18,663 Long-Term Liabilities: Unearned revenue on service contracts 2,718 2,656 Deferred income tax liability 234 234 Due to related medical practices 93 93 Operating lease liability - net of current portion 28,288 30,105 Financing lease liability - net of current portion 1,099 1,251 Long-term debt and capital leases, less current portion 770 865 Other liabilities 164 150 Total Long-Term Liabilities 33,366 35,354 Total Liabilities 50,457 54,017 CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts and shares in thousands, except per share amounts)(UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITY (Continued) STOCKHOLDERS' EQUITY: March 31, 2021 June 30, 2020 Class A non-voting preferred stock $.0001 par value; 453 shares authorized at March 31, 2021 and June 30, 2020, 313 issued and outstanding at March 31, 2021 and June 30, 2020 $ - $ - Preferred stock $.001 par value; 567 shares authorized at March 31, 2021 and June 30, 2020, issued and outstanding - none - - Common Stock $.0001 par value; 8,500 shares authorized at March 31, 2021 and June 30, 2020, 6,566 and 6,459 issued at March 31, 2021 and June 30, 2020, 6,554 and 6,447 outstanding at March 31, 2021 and June 30, 2020 1 1 Class B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at March 31, 2021 and June 30, 2020; .146 issued and outstanding at March 31, 2021 and June 30, 2020 - - Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at March 31, 2021 and June 30, 2020, 383 issued and outstanding at March 31, 2021 and June 30, 2020 - - Paid-in capital in excess of par value 185,101 183,076 Accumulated deficit (46,728 ) (56,215 ) Treasury stock, at cost - 12 shares of common stock at March 31, 2021 and June 30, 2020 (675 ) (675 ) Total Fonar Corporation's Stockholders' Equity 137,699 126,187 Noncontrolling interests (2,904 ) 55 Total Stockholders' Equity 134,795 126,242 Total Liabilities and Stockholders' Equity $ 185,252 $ 180,259 CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts and shares in thousands, except per share amounts)(UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, REVENUES 2021 2020 Patient fee revenue - net of contractual allowances and discounts $ 6,043 $ 5,713 Product sales - net 503 92 Service and repair fees - net 1,914 1,942 Service and repair fees - related parties - net 28 28 Management and other fees - net 11,808 11,218 Management and other fees - related medical practices - net 2,794 2,693 Total Revenues - Net 23,090 21,686 COSTS AND EXPENSES Costs related to patient fee revenue 2,828 2,840 Costs related to product sales 152 235 Costs related to service and repair fees 627 674 Costs related to service and repair fees - related parties 9 9 Costs related to management and other fees 7,073 6,004 Costs related to management and other fees - related medical practices 1,746 1,550 Research and development 419 535 Selling, general and administrative 6,114 7,224 Total Costs and Expenses 18,968 19,071 Income From Operations 4,122 2,615 Other Income/(Expense) 144 - Interest Expense (19 ) (17 ) Investment Income 64 126 Income Before Provision for Income Taxes and Noncontrolling Interests 4,311 2,724 Provision for Income Taxes (12 ) (810 ) Net Income 4,299 1,914 Net Income - Noncontrolling Interests (431 ) (653 ) Net Income - Attributable to FONAR $ 3,868 $ 1,261 Net Income Available to Common Stockholders $ 3,634 $ 1,184 Net Income Available to Class A Non-Voting Preferred Stockholders $ 174 $ 57 Net Income Available to Class C Common Stockholders $ 60 $ 20 Basic Net Income Per Common Share Available to Common Stockholders $ 0.55 $ 0.18 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.54 $ 0.18 Basic and Diluted Income Per Share - Class C Common $ 0.16 $ 0.05 Weighted Average Basic Shares Outstanding - Common Stockholders 6,554 6,447 Weighted Average Diluted Shares Outstanding - Common Stockholders 6,682 6,575 Weighted Average Basic and Diluted Shares Outstanding - Class C Common 383 383 CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts and shares in thousands, except per share amounts)(UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, REVENUES 2021 2020 Patient fee revenue - net of contractual allowances and discounts $ 16,372 $ 17,754 Product sales - net 534 288 Service and repair fees - net 5,702 6,044 Service and repair fees - related parties - net 83 83 Management and other fees - net 34,362 33,242 Management and other fees - related medical practices - net 8,181 7,473 Total Revenues - Net 65,234 64,884 COSTS AND EXPENSES Costs related to patient fee revenue 7,997 8,660 Costs related to product sales 477 685 Costs related to service and repair fees 1,861 2,196 Costs related to service and repair fees - related parties 27 30 Costs related to management and other fees 18,861 18,203 Costs related to management and other fees - related medical practices 4,696 4,707 Research and development 1,243 1,590 Selling, general and administrative 16,818 15,691 Total Costs and Expenses 51,980 51,762 Income From Operations 13,254 13,122 Other Income/(Expense) 4 1 Interest Expense (57 ) (57 ) Investment Income 251 413 Income Before Provision for Income Taxes and Noncontrolling Interests 13,452 13,479 Provision for Income Taxes (1,974 ) (2,849 ) Net Income 11,478 10,630 Net Income - Noncontrolling Interests (1,991 ) (2,966 ) Net Income - Attributable to FONAR $ 9,487 $ 7,664 Net Income Available to Common Stockholders $ 8,915 $ 7,194 Net Income Available to Class A Non-Voting Preferred Stockholders $ 426 $ 350 Net Income Available to Class C Common Stockholders $ 146 $ 120 Basic Net Income Per Common Share Available to Common Stockholders $ 1.37 $ 1.12 Diluted Net Income Per Common Share Available to Common Stockholders $ 1.35 $ 1.10 Basic and Diluted Income Per Share - Class C Common $ 0.38 $ 0.31 Weighted Average Basic Shares Outstanding - Common Stockholders 6,489 6,442 Weighted Average Diluted Shares Outstanding - Common Stockholders 6,617 6,570 Weighted Average Basic and Diluted Shares Outstanding - Class C Common 383 383 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts and shares in thousands, except per share amounts)(UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2021 2020 Cash Flows from Operating Activities: Net income $ 11,478 $ 10,630 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,100 3,001 Amortization on right-of-use assets 1,543 2,505 Provision(Recovery) for bad debts 5,103 1,711 Deferred income tax - net 1,712 2,481 Compensatory element of stock issuances 83 - Stock issued for costs and expenses 1,941 1,990 Abandoned patents 1 - (Increase) decrease in operating assets, net: Accounts, medical and management fee receivables (9,551 ) (6,808 ) Notes receivable 36 22 Contract assets (65 ) 372 Inventories (323 ) 23 Income tax receivable 671 - Prepaid expenses and other current assets 424 570 Other assets (1 ) (142 ) Increase (decrease) in operating liabilities, net: Accounts payable (189 ) (175 ) Other current liabilities (1,827 ) (193 ) Operating lease liabilities (1,168 ) (2,216 ) Financing lease liabilities (25 ) - Customer deposits 183 56 Other liabilities 14 105 Net cash provided by operating activities 13,140 13,932 Cash Flows from Investing Activities: Purchases of property and equipment (2,942 ) (6,601 ) Purchase of imaging facility (1,123 ) - Proceeds of short term investment - 15,063 Cost of patents (108 ) (79 ) Net cash (used)/provided by in investing activities (4,173 ) 8,383 Cash Flows from Financing Activities: Repayment of borrowings and capital lease obligations (73 ) (33 ) Proceeds from debt 63 - Distributions to noncontrolling interests (4,950 ) (5,145 ) Net cash used in financing activities (4,960 ) (5,178 ) Net Increase in Cash and Cash Equivalents 4,007 17,137 Cash and Cash Equivalents - Beginning of Period 36,802 13,882 Cash and Cash Equivalents - 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Fonar Announces 3rd Quarter and Nine Months Results for Fiscal 2021; Income Increases 125% By: Newsfile May 13, 2021 at 07:30 AM EDT Net Income increased 125% to $4.3 million for the quarter ended March 31, 2021 as compared to the corresponding quarter one year ago. Income from Operations increased 58% to $4.1 million for the quarter ended March 31, 2021, as compared to the corresponding quarter one year ago. Diluted Net Income per Common Share Available to Common Stockholders increased 200% to $0.54 for the quarter ended March 31, 2021 as compared to the corresponding quarter one year ago. Cash and Cash Equivalents increased 11% to $40.8 million at March 31, 2021 as compared to the year-end, June 30, 2020.Total Revenues-Net increased 6% to $23.1 million for the quarter ended March 31, 2021, versus the corresponding quarter one year earlier.COVID-19 drastically affected imaging center scan volumes during this past year. However, total scan volume for quarter ended March 31, 2021 was 44,515, about the same as is was in the corresponding quarter one year ago. FONAR's subsidiary HMCA now has 39 MRI scanners under its management as compared to 36 scanners one year ago.Net Book Value per common share increased 7% to $20.37 at March 31, 2021 as compared to the corresponding quarter one year ago.Melville, New York--(Newsfile Corp. - May 13, 2021) - FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning™, reported today its financial results for the 3rd Fiscal Quarter and Nine Months period ended March 31, 2021. FONAR's primary source of income and growth is attributable to its diagnostic imaging management subsidiary, Health Management Company of America (HMCA). Operating ResultsTotal Revenues-Net increased 6% to $23.1 million for the third fiscal quarter ended March 31, 2021 as compared to $21.7 million for the third fiscal quarter ended March 31, 2020. Total Revenues-Net for the nine-month period ended March 31, 2021 were $65.2 million as compared to $64.9 million for the nine-month period ended March 31, 2020.Income from Operations increased 58% to $4.1 million for the third fiscal quarter ended March 31, 2021 as compared to $2.6 million for the third fiscal quarter ended March 31, 2020. Income from Operations for the nine-month period ended March 31, 2021 was $13.3 million as compared to $13.1 million for the nine-month period ended March 31, 2020.Net Income increased 125% to $4.3 million for the third fiscal quarter ended March 31, 2021 as compared to $1.9 million for the third fiscal quarter ended March 31, 2020. Net Income for the nine-month period ended March 31, 2021 was $11.5 million as compared to $10.6 million for the nine-month period ended March 31, 2020.Diluted Net Income Per Common Share Available to Common Shareholders increased 200% to $0.54 for the third fiscal quarter ended March 31, 2021 as compared to $0.18 for the third fiscal quarter ended March 31, 2020. Diluted Net Income Per Common Share Available to Common Shareholders, for the nine-month period ended March 31, 2021 increased 23% to $1.35 as compared to $1.10 for the nine-month period ended March 31, 2020.Total Costs and Expenses were $19.0 million for the third fiscal quarter ended March 31, 2021 and March 31, 2020. Total Costs and Expenses for the nine-month period ended March 31, 2021 was $52.0 million and were $51.8 million for the nine-month period ended March 31, 2020.Selling, general & administrative expenses (SG&A) decreased 15% to $6.1 million for the quarter ended March 31, 2021 as compared to $7.2 million for the quarter ended March 31, 2020. SG&A increased 7% to $16.8 million for the nine month period ended March 31, 2021 as compared to $15.7 million for the nine period ended March 31, 2020. Balance Sheet ItemsTotal Cash and Cash Equivalents and Short Term Investments at March 31, 2021 increased 11% to $40.8 million as compared to the $36.8 million at June 30, 2020. Total Assets at March 31, 2021 were $185.3 million as compared to $180.3 million at June 30, 2020. Total Liabilities at March 31, 2021 were $50.5 million as compared to $54.0 million at June 30, 2020. The ratio of Total Assets / Total Liabilities increased 10% to 3.7 at March 31, 2021 as compared to 3.3 at June 30, 2020.Total Current Assets at March 31, 2021 were $103.6 million as compared to $95.9 million at June 30, 2020. Total Current Liabilities at March 31, 2021 were $17.1 million as compared to $18.7 million at June 30, 2020. Working Capital increased 12% to $86.5 million at March 31, 2021 as compared to $77.2 million at June 30, 2020.Net Book Value per Common Share increased 7% to $20.37 at March 31, 2021 as compared to $19.10 at March 31, 2020, one year ago. Cash Flow ItemOperating Cash Flow decreased 6% to $13.1 million for the nine month period ended March 31, 2021 as compared to $13.9 million for the nine month period ended March 31, 2020. Significant EventOn March 9, 2021, FONAR rang the Nasdaq Stock Market Closing Bell, to celebrate the 50th birthday of MRI. Fifty years ago, in March 1971, the widely-read journal Science published "Tumor Detection by Nuclear Magnetic Resonance" by FONAR founder and chairman Dr. Raymond V. Damadian. This journal article explained Dr. Damadian's discovery that there is a marked difference in the relaxation time of the NMR (MRI) signals between normal and cancerous tissues of the same type, as well as between different types of normal tissues.Soon scientists around the world began repeating his experiment to learn for themselves about his discovery. They often cited his works in their own peer reviewed publications and Dr. Damadian's publication in Science is often referred to as the beginning of MRI.To view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/7879/83831_1b66f7a5d43a8931_001full.jpgDr. Damadian said, "I got my first idea for MRI in 1969, and in 1970 made the discovery that is the basis for the making of every MRI image ever produced and the foundation of the MRI industry. The discovery resulted in the generation of the pronounced pixel contrast that was deficient in traditional medical imaging technology (X-ray, CT, 4%) and was needed for adequate visualization of the body's vital organs and assessment of their well-being. The discovery raised the pixel contrast of medical imaging, and the pronounced elaboration of image detail it generates to 131%." As reported in edubilla.com: "But without this discovery of the profound sensitivity of the relaxation time to different tissue types and malignant tissue THERE WOULD BE NO PICTURE AT ALL."Dr. Damadian's discovery, as reported in Science 1971, soon led to the first patent application in MRI in 1972. On July 3, 1977 Dr. Damadian, with his two post doctorate students, Lawrence Minkoff, Ph.D., and Michael Goldsmith. Ph.D., made the world's first MRI scan on the first ever MRI scanner they built and named 'Indomitable.'Dr. Damadian began FONAR, the world's first dedicated MRI Company in 1978, and the Company installed the world's first commercial MRI in 1980. In 1981 FONAR became a NASDAQ-listed company and 40 years later has delightedly marked the 50th anniversary of the birth of MRI by ringing the Nasdaq Stock Market Closing Bell.To view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/7879/83831_1b66f7a5d43a8931_002full.jpgManagement Discussion President and CEO Timothy R. Damadian commented on the performance of the Company's management subsidiary over the past year. "As of March 31, 2021, we completed twelve full months of operation under the cloud of the COVID-19 pandemic. In the first three of those twelve months, ending June 30, 2020, total scan volume at HMCA-managed sites was down by 42% compared to what is was in the corresponding period one year earlier. In the next three months, ending September 30, 2020, we were down by 12%. In the next three months, ending December 2020, we were down by 5%. Finally, in the last three months, ending March 31, 2021, we were down only 1%. It's been a remarkable recovery, thanks to the hard work of our management team, our site employees, and our headquarters' staff. "At the very end of March, we acquired a Stand-Up® MRI facility in Yonkers, New York, bringing the total number of HMCA-managed MRIs to 39. Physicians had been referring patients to this location for years, so we've been focused on preserving the existing business by continuing to provide the high quality service that they were accustomed to. By employing the marketing techniques and enhanced services that have made other HMCA-managed facilities successful, we expect to see substantial growth at this new location."Mr. Damadian concluded, "We have a very strong balance sheet. With Cash and Cash Equivalents at $40.8 million and relatively little debt, the Company's liquidity puts us in an excellent position to expand our network of HMCA-managed facilities through acquisitions or establishing de novo sites." Chairman of the Board, Raymond V. Damadian, M.D., said, "It's pleasing to see the Company continue to be profitable. Timothy has put together a highly competent management team that is doing a wonderful job. Since they took the reins in 2010, Total Revenues-Net have increased from $31.8 million in Fiscal Year 2010 to $85.6 million in Fiscal Year 2020, representing an effective annual growth rate of 10%. Dr. Damadian remarked, "The FONAR UPRIGHT® Multi-Position™ MRI continues to be a favorite scanner among patients and physicians. This is especially true when it comes to the spine and it is our experience that the FONAR UPRIGHT® Multi-Position™ MRI will often see pathology that is missed by recumbent-only MRI scanners. On the other hand, we have not heard of a recumbent scanner that has seen pathology in the spine that is missed by the FONAR UPRIGHT® Multi-Position™ MRI. The reason for this is simple. The UPRIGHT® MRI images patients in their full weight-bearing position that enables visualization of the spine subjected to its full normal weight load. The impact of the body's weight load on the spine's anatomy and existing pathology is not visualized in the recumbent-only position provided by the conventional MRI."Unfortunately, COVID-19 has delayed our R&D progress on MRI imaging of cerebrospinal fluid (CSF) flow and its impact on neurodegenerative diseases. Our research is focused on quantifying CSF flow and the velocity at which it navigates through the head, neck and spine. We've been able to quantify CSF flow from asymptomatic patients to assess quantitative degree to which CSF flow impairment is responsible for his (her) symptoms and the degree to which the patient's surgical or non-surgical CCJ treatment has restored the patient's critical brain and central nervous system's physiology to normal. We use the UPRIGHT® MRI to make cines (movies) of the fluid (CSF) as it flows up and down the neck, around the brain and up and down the spine. We are also hopeful that our research may lead to a new understanding of the role of CSF on neurodegenerative diseases, such as MS and Parkinson's disease."Dr. Damadian concluded, "Once the COVID-19 crisis is over and the economy returns to normal, there is every reason to believe that FONAR will significantly grow and prosper."About FONARFONAR, the Inventor of MR Scanning™, 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, "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 its 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 upright 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 cerebrospinal fluid (CSF) of the central nervous system. FONAR's UPRIGHT® Multi-Position™ MRI is the only scaner licensed under these patents.UPRIGHT® and STAND-UP® are registered trademarks. The Inventor of MR Scanning™, CSP™, Multi-Position™, UPRIGHT RADIOLOGY™, The Proof is in the Picture™, pMRI™, CSF Videography™ and Dynamic™, 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.Director of CommunicationsE-mail: investor@fonar.comwww.fonar.comThe Inventor of MR Scanning™An ISO 9001 CompanyMelville, New York 11747Phone: (631) 694-2929Fax: (631) 390-1772CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts and shares in thousands, except per share amounts)(UNAUDITED)ASSETS March 31, 2021 June 30, 2020 Current Assets: Cash and cash equivalents $ 40,809 $ 36,802 Short term investments 32 32 Accounts receivable - net 4,308 4,313 Accounts receivable - related party 42 6 Medical receivable - net 17,021 16,172 Management and other fees receivable - net 30,313 27,438 Management and other fees receivable - related medical practices - net 7,530 6,896 Inventories 1,971 1,649 Contract assets 218 153 Income tax receivable - 671 Prepaid expenses and other current assets 1,330 1,758 Total Current Assets 103,574 95,890 Accounts receivable 2,790 2,730 Deferred income tax asset 17,098 18,810 Property and equipment - net 22,133 21,364 Right-of-use Asset - operating lease 29,462 31,392 Right-of-use Asset - financing lease 1,177 1,326 Goodwill 4,269 3,985 Other intangible assets - net 4,090 4,109 Other assets 659 653 Total Assets $ 185,252 $ 180,259 CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts and shares in thousands, except per share amounts)(UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITY March 31, 2021 June 30, 2020 Current Liabilities: Current portion of long-term debt and capital leases $ 193 $ 108 Accounts payable 1,776 1,965 Other current liabilities 6,252 8,185 Unearned revenue on service contracts 4,121 4,105 Unearned revenue on service contracts - related party 28 - Operating lease liability - current portion 3,482 3,370 Financing lease liability - current portion 201 75 Customer deposits 1,038 855 Total Current Liabilities 17,091 18,663 Long-Term Liabilities: Unearned revenue on service contracts 2,718 2,656 Deferred income tax liability 234 234 Due to related medical practices 93 93 Operating lease liability - net of current portion 28,288 30,105 Financing lease liability - net of current portion 1,099 1,251 Long-term debt and capital leases, less current portion 770 865 Other liabilities 164 150 Total Long-Term Liabilities 33,366 35,354 Total Liabilities 50,457 54,017 CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts and shares in thousands, except per share amounts)(UNAUDITED)LIABILITIES AND STOCKHOLDERS' EQUITY (Continued) STOCKHOLDERS' EQUITY: March 31, 2021 June 30, 2020 Class A non-voting preferred stock $.0001 par value; 453 shares authorized at March 31, 2021 and June 30, 2020, 313 issued and outstanding at March 31, 2021 and June 30, 2020 $ - $ - Preferred stock $.001 par value; 567 shares authorized at March 31, 2021 and June 30, 2020, issued and outstanding - none - - Common Stock $.0001 par value; 8,500 shares authorized at March 31, 2021 and June 30, 2020, 6,566 and 6,459 issued at March 31, 2021 and June 30, 2020, 6,554 and 6,447 outstanding at March 31, 2021 and June 30, 2020 1 1 Class B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at March 31, 2021 and June 30, 2020; .146 issued and outstanding at March 31, 2021 and June 30, 2020 - - Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at March 31, 2021 and June 30, 2020, 383 issued and outstanding at March 31, 2021 and June 30, 2020 - - Paid-in capital in excess of par value 185,101 183,076 Accumulated deficit (46,728 ) (56,215 ) Treasury stock, at cost - 12 shares of common stock at March 31, 2021 and June 30, 2020 (675 ) (675 ) Total Fonar Corporation's Stockholders' Equity 137,699 126,187 Noncontrolling interests (2,904 ) 55 Total Stockholders' Equity 134,795 126,242 Total Liabilities and Stockholders' Equity $ 185,252 $ 180,259 CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts and shares in thousands, except per share amounts)(UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, REVENUES 2021 2020 Patient fee revenue - net of contractual allowances and discounts $ 6,043 $ 5,713 Product sales - net 503 92 Service and repair fees - net 1,914 1,942 Service and repair fees - related parties - net 28 28 Management and other fees - net 11,808 11,218 Management and other fees - related medical practices - net 2,794 2,693 Total Revenues - Net 23,090 21,686 COSTS AND EXPENSES Costs related to patient fee revenue 2,828 2,840 Costs related to product sales 152 235 Costs related to service and repair fees 627 674 Costs related to service and repair fees - related parties 9 9 Costs related to management and other fees 7,073 6,004 Costs related to management and other fees - related medical practices 1,746 1,550 Research and development 419 535 Selling, general and administrative 6,114 7,224 Total Costs and Expenses 18,968 19,071 Income From Operations 4,122 2,615 Other Income/(Expense) 144 - Interest Expense (19 ) (17 ) Investment Income 64 126 Income Before Provision for Income Taxes and Noncontrolling Interests 4,311 2,724 Provision for Income Taxes (12 ) (810 ) Net Income 4,299 1,914 Net Income - Noncontrolling Interests (431 ) (653 ) Net Income - Attributable to FONAR $ 3,868 $ 1,261 Net Income Available to Common Stockholders $ 3,634 $ 1,184 Net Income Available to Class A Non-Voting Preferred Stockholders $ 174 $ 57 Net Income Available to Class C Common Stockholders $ 60 $ 20 Basic Net Income Per Common Share Available to Common Stockholders $ 0.55 $ 0.18 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.54 $ 0.18 Basic and Diluted Income Per Share - Class C Common $ 0.16 $ 0.05 Weighted Average Basic Shares Outstanding - Common Stockholders 6,554 6,447 Weighted Average Diluted Shares Outstanding - Common Stockholders 6,682 6,575 Weighted Average Basic and Diluted Shares Outstanding - Class C Common 383 383 CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts and shares in thousands, except per share amounts)(UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, REVENUES 2021 2020 Patient fee revenue - net of contractual allowances and discounts $ 16,372 $ 17,754 Product sales - net 534 288 Service and repair fees - net 5,702 6,044 Service and repair fees - related parties - net 83 83 Management and other fees - net 34,362 33,242 Management and other fees - related medical practices - net 8,181 7,473 Total Revenues - Net 65,234 64,884 COSTS AND EXPENSES Costs related to patient fee revenue 7,997 8,660 Costs related to product sales 477 685 Costs related to service and repair fees 1,861 2,196 Costs related to service and repair fees - related parties 27 30 Costs related to management and other fees 18,861 18,203 Costs related to management and other fees - related medical practices 4,696 4,707 Research and development 1,243 1,590 Selling, general and administrative 16,818 15,691 Total Costs and Expenses 51,980 51,762 Income From Operations 13,254 13,122 Other Income/(Expense) 4 1 Interest Expense (57 ) (57 ) Investment Income 251 413 Income Before Provision for Income Taxes and Noncontrolling Interests 13,452 13,479 Provision for Income Taxes (1,974 ) (2,849 ) Net Income 11,478 10,630 Net Income - Noncontrolling Interests (1,991 ) (2,966 ) Net Income - Attributable to FONAR $ 9,487 $ 7,664 Net Income Available to Common Stockholders $ 8,915 $ 7,194 Net Income Available to Class A Non-Voting Preferred Stockholders $ 426 $ 350 Net Income Available to Class C Common Stockholders $ 146 $ 120 Basic Net Income Per Common Share Available to Common Stockholders $ 1.37 $ 1.12 Diluted Net Income Per Common Share Available to Common Stockholders $ 1.35 $ 1.10 Basic and Diluted Income Per Share - Class C Common $ 0.38 $ 0.31 Weighted Average Basic Shares Outstanding - Common Stockholders 6,489 6,442 Weighted Average Diluted Shares Outstanding - Common Stockholders 6,617 6,570 Weighted Average Basic and Diluted Shares Outstanding - Class C Common 383 383 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts and shares in thousands, except per share amounts)(UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2021 2020 Cash Flows from Operating Activities: Net income $ 11,478 $ 10,630 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,100 3,001 Amortization on right-of-use assets 1,543 2,505 Provision(Recovery) for bad debts 5,103 1,711 Deferred income tax - net 1,712 2,481 Compensatory element of stock issuances 83 - Stock issued for costs and expenses 1,941 1,990 Abandoned patents 1 - (Increase) decrease in operating assets, net: Accounts, medical and management fee receivables (9,551 ) (6,808 ) Notes receivable 36 22 Contract assets (65 ) 372 Inventories (323 ) 23 Income tax receivable 671 - Prepaid expenses and other current assets 424 570 Other assets (1 ) (142 ) Increase (decrease) in operating liabilities, net: Accounts payable (189 ) (175 ) Other current liabilities (1,827 ) (193 ) Operating lease liabilities (1,168 ) (2,216 ) Financing lease liabilities (25 ) - Customer deposits 183 56 Other liabilities 14 105 Net cash provided by operating activities 13,140 13,932 Cash Flows from Investing Activities: Purchases of property and equipment (2,942 ) (6,601 ) Purchase of imaging facility (1,123 ) - Proceeds of short term investment - 15,063 Cost of patents (108 ) (79 ) Net cash (used)/provided by in investing activities (4,173 ) 8,383 Cash Flows from Financing Activities: Repayment of borrowings and capital lease obligations (73 ) (33 ) Proceeds from debt 63 - Distributions to noncontrolling interests (4,950 ) (5,145 ) Net cash used in financing activities (4,960 ) (5,178 ) Net Increase in Cash and Cash Equivalents 4,007 17,137 Cash and Cash Equivalents - Beginning of Period 36,802 13,882 Cash and Cash Equivalents - End of Period $ 40,809 $ 31,019 To view the source version of this press release, please visit https://www.newsfilecorp.com/release/83831