Financial Performance - For the three-month period ended September 30, 2024, Fonar Corporation reported a net income of $4.0 million on revenues of $25.0 million, compared to a net income of $5.4 million on revenues of $25.8 million for the same period in 2023, indicating a revenue decrease of 3.4%[77][94] - Operating income decreased to $4.6 million for the first three months of fiscal 2025, down from $6.6 million in the same period of fiscal 2024, due to rising costs and expenses which increased by 5.6% to $20.4 million[79][94] - Revenues from the diagnostic facilities management segment decreased by 4.1% to $22.8 million in the first three months of fiscal 2025, compared to $23.8 million in the same period of fiscal 2024[88] Revenue Sources - Patient fee revenue decreased by $1.2 million, from $8.7 million in the first three months of fiscal 2024 to $7.5 million in fiscal 2025, contributing to the overall revenue decline[78] - The company has experienced lower reimbursement rates from Medicare and private insurance, impacting revenue from its scanning center business[118] - The reduced reimbursement rates negatively affect sales of MRI scanners, leading to lower revenue projections and potential price reductions from customers[128] Operational Efficiency - The number of scans performed increased to 53,054 in the three months ended September 30, 2024, up from 50,744 in the same period of 2023, reflecting operational efficiencies[79][89] - Fonar entered into an agreement with AIRS Medical to install the SwiftMR™ product on all Fonar Upright® scanners, which is expected to improve image quality and operational efficiency[111] Expenses and Costs - Research and development expenses decreased by 34.3% to $307,000 for the first three months of fiscal 2025, down from $467,000 in the same period of fiscal 2024[95] - Inflation has increased costs for materials and labor, making it difficult to achieve organic growth and profitability[119] Cash Flow and Liquidity - Cash and cash equivalents decreased from $56.4 million at June 30, 2024, to $54.3 million at September 30, 2024[101] - Cash provided by operating activities for the first three months of fiscal 2025 was $1.6 million, primarily due to net income and depreciation[102] - Cash used in investing activities was $1.8 million, mainly for the purchase of property and equipment[103] - Cash used in financing activities totaled $2.0 million, including repayments on long-term debt and treasury stock purchases[104] Liabilities and Working Capital - Total liabilities decreased by 7.0% to $53.5 million at September 30, 2024, from $57.5 million at June 30, 2024[105] - Current liabilities decreased by 20.0% to $14.4 million at September 30, 2024, from $17.9 million at June 30, 2024[107] - Working capital increased to $124.7 million at September 30, 2024, from $122.5 million at June 30, 2024[107] Future Investments and Challenges - The company plans to invest $2.0 million to place an additional scanner in New York, expected to be completed by the fourth quarter of fiscal 2025[109] - The company faces significant competition in the diagnostic imaging market from established hospitals and independent organizations[124] - Changes in Florida insurance law may lead to higher administrative costs and lower reimbursement rates for the company's facilities[127]

Core Viewpoint - FONAR Corporation reported solid financial results for fiscal 2024, with notable increases in earnings per share and net income, driven primarily by the HMCA segment's performance and an increase in MRI scan volume [1][9][11]. Revenue Summary - FONAR's total revenues for fiscal 2024 were $102.9 million, reflecting a 4.3% increase from $98.6 million in fiscal 2023 [2]. - The HMCA segment generated revenues of $94.6 million, up 4.6% from $90.4 million in the previous year, attributed to a 13.5% rise in patient fees [5]. - Revenues from the medical equipment segment remained stable at $8.3 million, with product sales and service revenues both increasing by 0.8% [3]. Segment Performance - Total MRI scan volume at HMCA-managed sites rose by 11.1% to 209,346 scans in fiscal 2024, with new MRI centers contributing to this growth [6]. - The fourth quarter saw a 3.3% increase in scan volume at HMCA-managed MRI centers, totaling 54,556 scans [7]. Operating Expenses - Selling, general, and administrative expenses decreased by 8.6% to $26.9 million due to improved management fee reserves [8]. - Research and development expenses increased by 10.7% to $1.7 million, focusing on upgrades for the Upright MRI scanner [8]. Profitability Metrics - Operating income for fiscal 2024 was $16.5 million, an increase of 11.8% from the previous year [9]. - Net income rose to $14.1 million, reflecting a 16.3% increase compared to fiscal 2023 [9]. Liquidity and Debt Management - FONAR ended fiscal 2024 with cash and cash equivalents of $56.5 million, up from $51.3 million at the end of fiscal 2023 [9]. - Total debt decreased to $113.9 million from $158.8 million year-over-year [9]. Future Outlook - Management plans to add high-field MRI machines to HMCA-managed sites, which is expected to further enhance revenue and scan volume in fiscal 2025 [11].

Core Viewpoint - Zacks Investment Research has initiated coverage of FONAR Corporation (FONR) with an "Outperform" recommendation, highlighting the company's strategic initiatives and strong positioning in the MRI diagnostic services market [1] Company Overview - FONAR Corporation, based in Melville, NY, has established a significant presence in the MRI industry, managing 42 MRI scanners as of now, up from nine in 2009 [2] - The company is recognized for developing the first commercial MRI scanner and focuses on designing, manufacturing, selling, and servicing MRI systems, particularly through its Upright MRI technology [2] Financial Performance - For the nine months ending March 31, 2024, FONR reported total revenues increasing by 5.6% and net income rising by 25.3%, indicating effective cost management and strong revenue generation [3] - Income from operations increased by 23.5%, reflecting the company's operational efficiency [3] - As of March 31, 2024, FONAR has total assets of $209.6 million and cash, cash equivalents, and short-term investments totaling $54.1 million [4] - The current ratio improved to 9.37, demonstrating strong liquidity to meet short-term liabilities, while working capital increased by 10.3% to $121.3 million, indicating solid financial health [4] Growth Drivers - Key factors driving FONR's future growth include diversified revenue streams from product sales, service operations, and management fees [5] - The adoption of SwiftMR technology enhances MRI image quality and reduces exam times, contributing to operational efficiency [5] - Strategic expansion efforts, such as opening new Stand-Up MRI centers in Casselberry, FL, and the Bronx, NY, are aimed at meeting rising demand and enhancing service capacity [5] Market Positioning - FONAR's stock has underperformed compared to industry peers and the broader market over the past year, currently trading at low valuation multiples relative to industry standards [7] - This presents a compelling entry point for investors, especially considering FONR's strategic market positioning and potential for profitability improvements [7] Additional Insights - The company has a modest market capitalization of $97.3 million, and the research report aims to provide investors with essential information for decision-making in this promising yet risky market segment [8]

FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 2024 Commission file number 0-10248 FONAR CORPORATION (Exact name of registrant as specified in its charter) | DELAWARE | 11-2464137 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 110 Marcus Drive Melville, New York | 11747 | | Address ...

woraput Introduction I recently created a screener on SA for microcap stocks trading below 6x EV/EBITDA and one name that caught my attention was FONAR Corp. (NASDAQ:FONR). The company has a strong balance sheet and I think its Q2 FY24 financial results were strong as TTM EBITDA reached $22.8 million. Yet, its market capitalization has slumped by over 20% in the past month and the EV/EBITDA ratio stands at just 4.2x as of the time of writing. In my view, Fonar is starting to look oversold here, and my ratin ...

FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended DECEMBER 31, 2023 Commission file number 0-10248 FONAR CORPORATION (Exact name of registrant as specified in its charter) | DELAWARE | 11-2464137 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 110 Marcus Drive Melville, New York | 11747 | | Addre ...

MFORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended SEPTEMBER 30, 2023 Commission file number 000-10248 FONAR CORPORATION (Exact name of registrant as specified in its charter) | DELAWARE | 11-2464137 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 110 Marcus Drive Melville, New York | 11747 | | ...

WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 0-10248 FONAR CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 11-2464137 (State of incorporation) (IRS Employer Identification Number) 110 Marcu ...

FORM 10-Q SECURITIES AND EXCHANGE COMMISSION For the quarterly period ended MARCH 31, 2023 Commission file number 0-10248 FONAR CORPORATION (Exact name of registrant as specified in its charter) | DELAWARE | 11-2464137 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 110 Marcus Drive Melville, New York | 11747 | | Address of principal executive offices) | (Zip Code) | Registrant's telephone number, including area code: (631) 69 ...

FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended DECEMBER 31, 2022 Commission file number 0-10248 FONAR CORPORATION (Exact name of registrant as specified in its charter) | DELAWARE | | 11-2464137 | | --- | --- | --- | | (State or jurisdiction of | other | (I.R.S. Employer | | incorporation organization) | or | Identification No.) | | 110 Marcus Melville, New York | Drive | ...