NOTE 17 - SEGMENT AND RELATED INFORMATION

12 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

NOTE 17 - SEGMENT AND RELATED INFORMATION

FONAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 and 2012

NOTE 17 - SEGMENT AND RELATED INFORMATION

The Company provides segment data in accordance with the provisions of ASC topic 280, “Disclosures about Segments of an Enterprise and Related Information”.

The Company operates in two industry segments - manufacturing and the servicing of medical equipment and management of diagnostic imaging centers.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. All intersegment sales are market-based. The Company evaluates performance based on income or loss from operations.

Summarized financial information concerning the Company’s reportable segments is shown in the following table:

	Manufacturing and Servicing of Medical Equipment		Management of Diagnostic Imaging Centers		Totals
Fiscal 2013:
Net revenues from external customers	$	14,891,075	$	34,250,739	$	49,141,814
Intersegment net revenues	$	1,200,000	$	—	$	1,200,000
Income from operations	$	139,390	$	7,396,357	$	7,535,747
Depreciation and amortization	$	541,551	$	1,879,626	$	2,421,177
Compensatory element of stock  issuances	$	415,021	$	—	$	415,021
Total identifiable assets	$	15,071,225	$	58,079,425	$	73,150,650
Capital expenditures	$	237,636	$	25,170,303	$	25,407,939
Fiscal 2012:
Net revenues from external  customers	$	18,707,006	$	20,737,413	$	39,444,419
Intersegment net revenues	$	810,000	$	—	$	810,000
Income from operations	$	2,666,574	$	4,539,977	$	7,206,551
Depreciation and amortization	$	697,100	$	1,533,150	$	2,230,250
Compensatory element of stock  issuances	$	155,068	$	25,350	$	180,418
Total identifiable assets	$	15,144,291	$	18,471,177	$	33,615,468
Capital expenditures	$	404,530	$	822,842	$	1,227,372

Export Product Sales

The Company’s areas of operations are principally in the United States. The Company had export sales of medical equipment amounting to 3.8% and 17.0% of product sales revenues to third parties for the years ended June 30, 2013 and 2012, respectively.

The foreign product sales, as a percentage of product sales to unrelated parties, were made to customers in the following countries:

	For the Years Ended June 30,
	2013			2012
Holland		0.0	%		0.1	%
England		3.6			16.9
Germany		0.1			—
Libya		0.1			—
		3.80	%		17.0	%

Foreign Service and Repair Fees

The Company’s areas of service and repair are principally in the United States. The Company had foreign revenues of service and repair of medical equipment amounting to 8.2% and 9.9% of consolidated net service and repair fees for the years ended June 30, 2013 and 2012, respectively. The foreign service and repair fees, as a percentage of total service and repair fees, were provided principally to the following countries:

	For the Years Ended June 30,
	2013			2012
Spain		0.9	%		0.8	%
Puerto Rico		1.0			0.9
Switzerland		1.1			1.0
Germany		—			0.3
England		2.0			1.8
Holland		2.2			2.6
Scotland		—			0.7
Canada		—			0.8
Australia		1.0			0.4
Libya		—			0.2
Greece		—			0.4
		8.2	%		9.9	%

The Company does not have any material assets outside of the United States.