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 | | ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) FONAR Corporation operates in medical equipment manufacturing (Upright® MRI) and diagnostic services management (HMCA) - The company's business is divided into two main segments: **Medical Equipment (FONAR)** and **Physician Management and Diagnostic Services (HMCA)**[11](index=11&type=chunk) - FONAR's primary product is the **Upright® Multi-Position™ MRI scanner**, enabling scans in various weight-bearing postures[13](index=13&type=chunk)[18](index=18&type=chunk) - HMCA manages **41 MRI scanners** across New York and Florida, with revenues increasing to **$90.4 million** in fiscal 2023[97](index=97&type=chunk) [Medical Equipment Segment](index=5&type=section&id=Medical%20Equipment%20Segment) The Medical Equipment segment focuses on the **Upright® MRI**, a unique weight-bearing scanner, with **$7.5 million** in service revenue - The primary product is the **Upright® MRI**, a whole-body scanner capable of scanning patients in various weight-bearing postures[18](index=18&type=chunk)[20](index=20&type=chunk) Medical Equipment Segment Financials (Fiscal Years 2023 vs. 2022) | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Service & Maintenance Revenue | $7.5 million | $7.7 million | | R&D Expenditures | $1,567,749 | $1,494,181 | | Order Backlog (as of Sept) | $608,000 | $844,000 | - As of June 30, 2023, FONAR holds **225 issued patents** with 8 pending, including two new patents issued in fiscal 2023[48](index=48&type=chunk) - The company's MRI scanners are regulated by the **FDA as Class II medical devices**, requiring compliance with QSR and MDR regulations[60](index=60&type=chunk)[61](index=61&type=chunk) [Physician and Diagnostic Services Management Business (HMCA)](index=16&type=section&id=Physician%20and%20Diagnostic%20Services%20Management%20Business) HMCA provides non-medical management services to **41 diagnostic imaging facilities**, generating **$90.4 million** in fiscal 2023 revenue HMCA Segment Revenue (Fiscal Years 2023 vs. 2022) | Revenue Source | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Total HMCA Revenue | $90.4 million | $89.4 million | | Patient Fees (6 FL facilities) | $29,793,993 | $29,582,238 | | Aggregate Monthly Management Fees | $4,860,732 | $4,865,443 | - HMCA's client receipts are heavily reliant on **no-fault insurance (58.4%)** and **workers' compensation programs (8.6%)**[158](index=158&type=chunk) - The business is subject to significant government regulation, including the **federal Stark Law**, **Anti-kickback statutes**, and **HIPAA**[138](index=138&type=chunk)[139](index=139&type=chunk)[145](index=145&type=chunk) - As of September 12, 2023, FONAR and HMCA had approximately **561 employees**[164](index=164&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from reduced reimbursement rates, inflation, competition, and changes in Florida's insurance laws - Reduced reimbursement rates from Medicare and private insurers, coupled with inflation, negatively impact profitability and MRI scanner demand[166](index=166&type=chunk) - The company faces strong competition from larger scanner manufacturers and local hospitals in the diagnostic services market[168](index=168&type=chunk) - The business is heavily dependent on patient referrals from unaffiliated physicians, and a reduction would significantly harm revenue[168](index=168&type=chunk) - Recent changes to Florida's insurance laws (House Bill 837) are expected to negatively impact reimbursement rates and increase uncollectible billings[172](index=172&type=chunk) [Properties](index=29&type=section&id=Item%202.%20Properties) FONAR and HMCA lease approximately **78,000 square feet** for their principal offices in Melville, NY, with leases for other facilities - The company leases its main office and plant space of **78,000 square feet** in Melville, NY, with the lease extending to November 2026[175](index=175&type=chunk) [Legal Proceedings](index=29&type=section&id=Item%203.%20Legal%20Proceedings) The company reports no material legal proceedings currently threatened or pending against it - There are no material legal proceedings threatened or pending against the Company[176](index=176&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not Applicable[177](index=177&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=30&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) FONAR's Common Stock trades on NASDAQ (FONR), with a policy of retaining earnings for business development and no current dividends - The Company's Common Stock is traded on the **NASDAQ Capital Market (symbol: FONR)**[179](index=179&type=chunk) - The company has a policy of retaining earnings for business expansion and does not currently pay dividends[180](index=180&type=chunk) Stock Performance Comparison (Investment of $100) | Date | FONR Common Stock | Nasdaq Composite | Nasdaq Health | Nasdaq Equipment | | :--- | :--- | :--- | :--- | :--- | | June 28, 2019 | $100 | $100 | $100 | $100 | | June 30, 2020 | $99 | $127 | $114 | $106 | | June 30, 2021 | $82 | $184 | $58 | $54 | | June 30, 2022 | $71 | $141 | $193 | $129 | | June 30, 2023 | $79 | $178 | $185 | $145 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2023, net income decreased to **$12.1 million** despite a slight revenue increase to **$98.6 million**, driven by higher costs Consolidated Results of Operations (Fiscal Years 2023 vs. 2022) | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Total Revenues | $98.6 million | $97.6 million | | Net Income | $12.1 million | $17.2 million | | Operating Income | $14.8 million | $22.0 million | - Selling, general and administrative (SG&A) expenses increased by **25.0%** to **$29.4 million** in fiscal 2023, primarily due to higher reserves on receivables[218](index=218&type=chunk) - Cash and cash equivalents increased by **5.2%** to **$51.3 million** at June 30, 2023, with **$14.5 million** provided by operating activities[230](index=230&type=chunk)[231](index=231&type=chunk) - Under its stock repurchase plan, the company repurchased **103,148 shares** for **$1.8 million** during fiscal 2023[244](index=244&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company has no investments in marketable securities or foreign currencies, limiting market risk as all business is in U.S. dollars - The Company does not hold investments in marketable securities or foreign currencies and transacts all business in United States dollars, minimizing market risk[247](index=247&type=chunk) [Financial Statements and Supplementary Data](index=39&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Consolidated financial statements for fiscal 2023 and 2022 are presented with an unqualified auditor opinion, showing **$200.6 million** in total assets [Report of Independent Registered Public Accounting Firm](index=40&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Marcum LLP issued an unqualified opinion on the financial statements, highlighting critical audit matters for accounts receivable reserves - The auditor, Marcum LLP, provided an **unqualified opinion** on the financial statements, indicating fair presentation in conformity with U.S. GAAP[249](index=249&type=chunk) - Critical Audit Matters identified were reserves for **Medical Accounts Receivable** and **Management Fee Accounts Receivable**, due to complex judgment in estimating net realizable value[255](index=255&type=chunk)[258](index=258&type=chunk) [Consolidated Financial Statements](index=43&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets of **$200.6 million** and stockholders' equity of **$150.8 million** as of June 30, 2023 Consolidated Balance Sheet Highlights (as of June 30) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Current Assets | $125.7 million | $118.7 million | | Total Assets | $200.6 million | $199.3 million | | Total Current Liabilities | $15.6 million | $16.7 million | | Total Liabilities | $49.8 million | $53.1 million | | Total Stockholders' Equity | $150.8 million | $146.2 million | Consolidated Income Statement Highlights (for the year ended June 30) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenues – Net | $98,645,101 | $97,592,145 | | Income from Operations | $14,789,262 | $22,007,182 | | Net Income | $12,126,516 | $17,234,388 | | Diluted Net Income Per Common Share | $1.32 | $1.75 | Consolidated Cash Flow Highlights (for the year ended June 30) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $14,467,130 | $15,301,360 | | Net Cash Used in Investing Activities | ($4,338,128) | ($5,179,323) | | Net Cash Used in Financing Activities | ($7,572,272) | ($5,859,471) | | Net Increase in Cash | $2,556,730 | $4,262,566 | [Notes to Consolidated Financial Statements](index=52&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment performance, and financial results, highlighting the **diagnostic management segment's $90.4 million** revenue - The company's revenue recognition for scanner sales uses the **percentage-of-completion method**, while service and management fee revenues are recognized straight-line or by contract[306](index=306&type=chunk)[307](index=307&type=chunk)[308](index=308&type=chunk) - Under a stock repurchase plan, the company purchased **103,148 shares** for **$1,759,457** in fiscal 2023[370](index=370&type=chunk)[371](index=371&type=chunk) Segment Financial Information (Fiscal 2023) | Segment | Net Revenues (External) | (Loss) Income from Operations | | :--- | :--- | :--- | | Manufacturing and Servicing | $8,260,711 | ($5,875,126) | | Management of Diagnostic Imaging | $90,384,390 | $20,664,388 | - As of June 30, 2023, the company has federal **net operating loss (NOL) carryforwards** of approximately **$9.1 million** available, expiring from 2025[384](index=384&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of June 30, 2023 - The Principal Executive Officer and Acting Principal Financial Officer concluded that disclosure controls and procedures were effective as of fiscal year-end[426](index=426&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of June 30, 2023, based on the **COSO-2013 framework**[429](index=429&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=82&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section details the company's leadership, including key executive officers and a board of directors with a majority of independent members - The key executive officers are **Timothy R. Damadian** (Chairman, President, CEO, Treasurer) and **Luciano B. Bonanni** (EVP, COO, acting PFO)[439](index=439&type=chunk)[440](index=440&type=chunk) - A majority of the board of directors is independent, including Ronald G. Lehman, Richard E. Turk, and Jessica Maher[435](index=435&type=chunk) [Executive Compensation](index=86&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation for fiscal 2023 included **$152,900** for CEO Timothy R. Damadian and **$449,216** for COO Luciano Bonanni Summary Compensation Table (Fiscal 2023) | Name and Position | Salary ($) | Cash Bonuses ($) | Total Compensation ($) | | :--- | :--- | :--- | :--- | | Timothy R. Damadian (President, CEO) | 0 | 152,900 | 152,900 | | Raymond V. Damadian (Former Chairman) | 23,553 | 305,800 | 329,353 | | Luciano Bonanni (COO, acting PFO) | 143,416 | 305,800 | 449,216 | - There were no outstanding unexercised options or stock awards for the named executive officers at the end of fiscal year 2023[458](index=458&type=chunk) [Security Ownership of Certain Beneficial Owners and Management](index=88&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management) Timothy R. Damadian, as trustee, beneficially owns **99.98%** of the Class C Common Stock, holding significant voting power - Beneficial owners with over **5%** of Common Stock include **Kayne Anderson (9.75%)**, **Dimensional Fund Advisors (6.35%)**, and **The Vanguard Group (5.80%)**[464](index=464&type=chunk) - Timothy R. Damadian, as trustee, holds **99.98%** of the Class C Common Stock, which has **25 votes per share**[464](index=464&type=chunk)[364](index=364&type=chunk) - All officers and directors as a group beneficially own **1.50%** of the Common Stock and **99.98%** of the Class C Stock[466](index=466&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=90&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company discloses related-party transactions, primarily involving CEO Timothy Damadian, including **$11.9 million** in net revenues from managed facilities - Three imaging facilities owned by CEO Timothy Damadian are managed by HMCA, paying approximately **$11.9 million** in net revenues in fiscal 2023[471](index=471&type=chunk)[472](index=472&type=chunk) - The company provided IT services to a billing company partially owned by CEO Timothy Damadian, billing **$191,072** in fiscal 2023[474](index=474&type=chunk) [Principal Accountant Fees and Services](index=91&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) This section details fees paid to independent auditor Marcum LLP, with audit fees of **$374,000** in fiscal 2023 Audit Fees Billed by Marcum LLP | Fiscal Year | Audit Fees | | :--- | :--- | | 2023 | $374,000 | | 2022 | $379,000 | - No fees were billed by Marcum LLP for audit-related, tax, or other services in fiscal years 2023 or 2022[479](index=479&type=chunk)[480](index=480&type=chunk)[481](index=481&type=chunk) Part IV [Exhibits, Financial Statement Schedules, and Reports on Form 8-K](index=92&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules%2C%20and%20Reports%20on%20Form%208-K) This section lists financial statements, schedules, and exhibits filed as part of the 10-K report, including corporate documents - The section lists all financial statements and schedules included in the report, found in Part II, Item 8[486](index=486&type=chunk) - Three Form 8-K reports were filed during the fiscal year, covering results of operations, director changes, and shareholder meeting results[488](index=488&type=chunk) - A list of exhibits is provided, including corporate governance documents, material contracts, and required CEO/CFO certifications[489](index=489&type=chunk)[501](index=501&type=chunk)[504](index=504&type=chunk)

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 | ...

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 SEPTEMBER 30, 2022 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 | | Ad ...