Fonar(US:FONR)2025-11-10 17:56Financial Performance - For the three-month period ended September 30, 2025, the company reported net income of $2.7 million on revenues of $26.0 million, compared to net income of $4.0 million on revenues of $25.0 million for the same period in 2024, indicating a revenue increase of 4.0%[110] - Operating income decreased from $4.6 million for the three months ended September 30, 2024, to $3.2 million for the same period in 2025, reflecting a decline of 30.4%[115] - HMCA revenues increased by 0.3% to $23.5 million in the first three months of fiscal 2026, while operating income decreased from $5.6 million to $4.4 million[118][119] - Cash provided by operating activities for the first three months of fiscal 2026 was $1.7 million, primarily from net income of $2.7 million[136] Revenue and Expenses - Revenues from management and other fees increased by $612,000, from $15.3 million in fiscal 2025 to $16.0 million in fiscal 2026, while product sales and service fees rose from $2.2 million to $2.5 million[111] - Total costs and expenses increased by 12.2% to $22.8 million for the first three months of fiscal 2026, compared to $20.4 million for the same period in fiscal 2025[130] - Selling, general and administrative expenses increased to $6.8 million in the first three months of fiscal 2026 from $5.1 million in the same period of fiscal 2025, driven by various factors including legal and advisory fees related to a proposed transaction[131] - Research and development expenses rose by 4.3% to $440,000 for the first three months of fiscal 2026, compared to $307,000 for the same period in fiscal 2025[132] Operational Metrics - The total number of scans performed increased to 55,106 in the first quarter of fiscal 2026, up from 53,054 in the first quarter of fiscal 2025, attributed to improved operational capacity[114] - MRI product sales revenues increased to $316,000 in the first three months of fiscal 2026 from $120,000 in the same period of fiscal 2025[124] Cash and Liabilities - Cash and cash equivalents, and short-term investments decreased from $56.3 million at June 30, 2025 to $54.3 million at September 30, 2025[135] - Total liabilities increased by 0.3% to $57.0 million at September 30, 2025 from $56.8 million at June 30, 2025[140] - "Other" current liabilities decreased by 27.1% to $5.1 million at September 30, 2025 from $7.0 million at June 30, 2025[140] - Working capital decreased to $127.1 million at September 30, 2025 from $127.5 million at June 30, 2025[142] Future Plans and Strategies - The company plans to complete the installation of an additional high field scanner in Lynbrook, New York, with capital expenditures approximating $1.5 million[147] - The company intends to open an additional location on Long Island, New York, with expected costs of approximately $400,000 for a new scanner and $500,000 in related buildout costs[147] - Management is seeking to promote wider market recognition of FONAR's scanner products amid liquidity and credit constraints in the markets[148] - The company believes its existing cash balances and internal cash generating capabilities are sufficient to finance capital expenditures and operating activities for at least the next twelve months[149] - The company maintains its funds in liquid accounts, with all revenue, expense, and capital purchasing activities transacted in United States dollars[150] Corporate Actions - The company is currently negotiating a proposal to go private, which would result in its common stock being delisted from NASDAQ, with no definitive agreements yet executed[108]