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<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">JUNE 30, 2015, 2014 and 2013</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY
AND CAPITAL RESOURCES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Description of Business</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">FONAR Corporation (the “Company”
or “FONAR”) is a Delaware corporation, which was incorporated on July 17, 1978. FONAR is engaged in the research, development,
production and marketing of medical scanning equipment, which uses principles of Magnetic Resonance Imaging ("MRI") for
the detection and diagnosis of human diseases. In addition to deriving revenues from the direct sale of MRI equipment, revenue
is also generated from our installed-base of customers through our service and upgrade programs.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">FONAR, through its wholly-owned subsidiary Health
Management Corporation of America ("HMCA") provides comprehensive management services to diagnostic imaging facilities.
The services provided by the Company include development, administration, leasing of office space, facilities and medical equipment,
provision of supplies, staffing and supervision of non-medical personnel, legal services, accounting, billing and collection and
the development and implementation of practice growth and marketing strategies.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On March 5, 2013, the Company acquired a majority
interest in a newly formed limited liability company, Health Diagnostics Management LLC (HDM), a business managing 12 Stand-Up
MRI centers and 2 other scanning centers located in Florida and New York for a total cost of $40 million. HDM has a perpetual existence.
See Note 9</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During May 2011, HMCA contributed all of its
assets together with its liabilities to a newly formed limited liability company, Imperial Management Services, LLC (“Imperial”),
which has a perpetual existence. As of June 30, 2015, Imperial manages 11 diagnostic imaging facilities which are located in the
states of New York and Florida.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Principles of Consolidation</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The consolidated financial statements include
the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships. The operating activities of subsidiaries
are included in the accompanying consolidated statements from the date of acquisition. All significant intercompany accounts and
transactions have been eliminated in consolidation.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The preparation of the consolidated financial
statements in conformity with accounting principles generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
in the consolidated financial statements and accompanying notes. The most significant estimates relate to receivable allowances,
intangible assets, income taxes and related tax asset valuation allowances, useful lives of property and equipment, contingencies,
revenue recognition and the assessment of litigation. In addition, healthcare industry reforms and reimbursement practices will
continue to impact the Company's operations and the determination of contractual and other allowance estimates. Actual results
could differ from those estimates.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Inventories</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Inventories consist of purchased parts, components
and supplies, as well as work-in-process, and are stated at the lower of cost, determined on the first-in, first-out method, or
market.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Property and Equipment</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Property and equipment procured in the normal
course of business is stated at cost. Property and equipment purchased in connection with an acquisition is stated at its estimated
fair value, generally based on an appraisal. Property and equipment is being depreciated for financial accounting purposes using
the straight-line method over their estimated useful lives. Leasehold improvements are being amortized over the shorter of the
useful life or the remaining lease term. Upon retirement or other disposition of these assets, the cost and related accumulated
depreciation of these assets are removed from the accounts and the resulting gains or losses are reflected in the results of operations.
Expenditures for maintenance and repairs are charged to operations. Renewals and betterments are capitalized. Maintenance and repair
expenses totaled approximately $1,200,000, $1,037,000 and $598,000 for the years ended June 30, 2015, 2014 and 2013, respectively.
The estimated useful lives in years are generally as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 80%; text-align: justify; padding-left: 5.4pt">Diagnostic equipment under capital lease</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">2.5</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Diagnostic equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5–13</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Research, development and demonstration equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-7</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Machinery and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2-7</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Furniture and fixtures</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-9</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Leasehold improvements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2–10</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Building</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Long-Lived Assets</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company periodically assesses the recoverability
of long-lived assets, including property and equipment and intangibles, other than goodwill, when there are indications of potential
impairment, based on estimates of undiscounted future cash flows. The amount of impairment is calculated by comparing anticipated
discounted future cash flows with the carrying value of the related asset. In performing this analysis, management considers such
factors as current results, trends, and future prospects, in addition to other economic factors.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Deferred Rent</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Rent expense is recorded on the straight-line method based on the
total minimum rent payments required over the term of the lease. The cumulative difference between the lease expense recorded under
this method and the contractual lease payment terms is recorded as deferred rent.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Other Intangible Assets</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">1) Capitalized Software Development Costs</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Capitalization of software development costs
begins upon the establishment of technological feasibility. Technological feasibility for the Company’s computer software
is generally based upon achievement of a detail program design free of high risk development issues and the completion of research
and development on the product hardware in which it is to be used. The establishment of technological feasibility and the ongoing
assessment of recoverability of capitalized computer software development costs require considerable judgment by management with
respect to certain external factors, including, but not limited to, technological feasibility, anticipated future gross revenue,
estimated economic life and changes in software and hardware technology. Prior to reaching technological feasibility those costs
are expensed as incurred and included in research and development.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of capitalized software development
costs commences when the related products become available for general release to customers. Amortization is provided on a product
by product basis. The annual amortization is the greater of the amount computed using (a) the ratio that current gross revenue
for a product bears to the total of current and anticipated future gross revenue for that product, or (b) the straight-line method
over the remaining estimated economic life of the product.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company periodically performs reviews of
the recoverability of such capitalized software development costs. At the time a determination is made that capitalized amounts
are not recoverable, based on the estimated cash flows to be generated from the applicable software, any remaining capitalized
amounts are written off.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">2) Patents and Copyrights</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization is calculated on the straight-line
basis over a period ranging from 15 to 17 years.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">3) Non-Competition Agreements</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The non-competition agreements are being amortized
on the straight line basis over the length of the agreement (7 years).</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">4) Customer Relationships</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization is calculated on the straight line
basis over 20 years.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Goodwill</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Generally accepted accounting principles in
the United States require the Company to perform a goodwill impairment test annually and more frequently when negative conditions
or a triggering event arises. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit’s
carrying amount, including goodwill to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds
its fair value, goodwill is considered potentially impaired and a second step is performed to measure the amount of impairment
loss, if any.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Acquired assets and assumed liabilities</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Pursuant to ASC No. 805-10-25, if the initial
accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, but during
the allowed measurement period not to exceed one year from the acquisition date, the Company retrospectively adjusts the provisional
amounts recognized at the acquisition date by means of adjusting the amount recognized for goodwill.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Revenue on sales contracts for scanners, included
in “product sales” in the accompanying consolidated statements of operations, is recognized under the percentage-of-completion
method in accordance with FASB ASC 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts”.
The Company manufactures its scanners under specific contracts that provide for progress payments. Production and installation
take approximately three to six months.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Revenue on scanner service contracts is recognized
on the straight-line method over the related contract period, usually one year.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Revenue from sales of other items is recognized
upon shipment.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Revenue under management contracts is recognized
based upon contractual agreements for management services rendered by the Company primarily under various long-term agreements
with various medical providers (the "PCs"). As of June 30, 2015, the Company has twenty management agreements of which
three are with PC’s owned by Raymond V. Damadian, M.D., President and Chairman of the Board of FONAR (“the Related
medical practices”) and seventeen are with PC’s, which are all located in the state of New York (“the New York
PC’s”), owned by two unrelated radiologists. The contractual fees for services rendered to the PCs consists of fixed
monthly fees per diagnostic imaging facility ranging from approximately $100,000 to $242,000. All fees are re-negotiable at the
anniversary of the agreements and each year thereafter. Revenue under lease contracts is recognized based upon contractual agreements
for the leasing of medical equipment primarily under long term contracts to various unrelated PC’s. The lease fee for the
medical equipment consists of a fixed monthly fee of $2,000. All fees are re-negotiable at the anniversary of the agreements and
each year thereafter.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Patient fee revenue, net of contractual allowance
and discounts, consist of net patient fees received from insurance companies, third party payors (including federal and state agencies
under Medicare and Medicaid programs), hospitals and patients themselves based mainly upon established contractual billing rates,
less allowances for contractual adjustments and discounts. Patient fee revenue is recorded in the period in which services are
provided.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s patient fee revenues, net
of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2015, 2014 and 2013 are summarized
in the following table.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For the Year Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Commercial Insurance/ Managed Care</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,398,589</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,217,088</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,360,536</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -8.1pt; padding-left: 8.1pt">Medicare/Medicaid</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,187,690</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,443,020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">541,602</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Workers' Compensation/Personal Injury</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,978,243</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,369,956</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,597,416</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt">Other</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,589,076</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,277,128</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,982,311</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Patient Fee Revenue, net of contractual allowances and discounts</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,153,598</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,307,192</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,481,865</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt">Provision for Bad Debts</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(12,770,249</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(10,333,082</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,584,669</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -8.1pt; padding-left: 8.1pt">Net Patient Fee for Revenue</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,383,349</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,974,110</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,897,196</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Allowance for Doubtful Accounts – Patient
Fee</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company provides for medical receivables
that could become uncollectible by establishing an allowance for doubtful accounts in order to adjust medical receivables to estimated
net realizable value. In evaluating the collectability of medical receivables, the Company considers a number of factors, including
the age of the account, historical collection experiences, payor type, current economic conditions and other relevant factors.
There are various factors that impact collection trends, such as payor mix, changes in the economy, increase burden on copayments
to be made by patients with insurance and business practices related to collection efforts. These factors continuously change
and can have an impact on collection trends and the estimation process.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Research and Development Costs</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Research and development costs are charged to
expense as incurred. The costs of equipment that are acquired or constructed for research and development activities, and have
alternative future uses (either in research and development, marketing or production), are classified as property and equipment
and depreciated over their estimated useful lives.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Advertising Costs</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Advertising costs are expensed as incurred.
Advertising expense approximated $894,000, $889,000 and $835,000 for the years ended June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Shipping Costs</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s shipping and handling costs
are included in revenue from product sales and the related expense included in costs related to product sales is $9,293, $1,885
and $5,838 for the years ended June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Deferred tax assets and liabilities are determined
based on the difference between the financial statement carrying amounts and tax basis of assets and liabilities using enacted
tax rates in effect in the years in which the differences are expected to reverse.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Customer Advances</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Cash advances and progress payments received
on sales orders are reflected as customer advances until such time as revenue recognition occurs.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Earnings Per Share</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Basic earnings per share (“EPS”)
is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding
during the period. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class Method”, the Company
used the Two-Class method for calculating basic earnings per share and applied the if converted method in calculating diluted earnings
per share for the years ended June 30, 2015, 2014 and 2013.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Diluted EPS reflects the potential dilution
from the exercise or conversion of all dilutive securities into common stock based on the average market price of common shares
outstanding during the period. For the years ended June 30, 2015, 2014 and 2013, diluted EPS for common shareholders includes
127,504 shares upon conversion of Class C Common.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; padding-bottom: 1pt">Basic</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class C Common  Stock</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Numerator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 48%; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt">Net income available to common stockholders</td><td style="width: 1%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 13%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">12,910,651</td><td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 3%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 13%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">12,071,670</td><td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 3%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 13%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">213,672</td><td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,050,632</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,050,632</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt">Basic income per common share</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2.13</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2.00</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">0.56</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center">Diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted average shares outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,050,632</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">382,513</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt">Class C Common Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">127,504</td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,178,136</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">1.95</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">0.56</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: right; border-bottom: Black 1pt solid">June 30, 2014</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center; padding-bottom: 1pt">Basic</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Class C Common Stock</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Numerator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Net income available to common stockholders</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,396,130</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,720,030</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">172,189</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,009,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,009,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Basic income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.73</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.62</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.45</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center">Diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Weighted average shares outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,009,822</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">382,513</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; width: 48%">Class C Common Stock</td><td style="padding-bottom: 1pt; width: 2%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 3%"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: right; width: 11%">127,504</td><td style="padding-bottom: 1pt; text-align: left; width: 2%"> </td><td style="padding-bottom: 1pt; width: 3%"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: right; width: 14%">—  </td><td style="padding-bottom: 1pt"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,137,326</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.58</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.45</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center; padding-bottom: 1pt">Basic</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class C Common Stock</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Numerator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 48%; text-align: left; padding-bottom: 2.5pt">Net income Available to common stockholders</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 13%; border-bottom: Black 2.5pt double; text-align: right">8,678,542</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; text-align: right">8,107,367</td><td style="width: 2%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 14%; border-bottom: Black 2.5pt double; text-align: right">145,467</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">5,933,318</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">5,933,318</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Basic income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.37</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center">Diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">5,933,318</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Class C Common Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">127,504</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,060,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.34</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company considers all short-term highly
liquid investments with a maturity of three months or less when purchased to be cash equivalents.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Concentration of Credit Risk</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Cash: The Company maintains its cash and cash
equivalents with various financial institutions, which exceed federally insured limits throughout the year. At June 30, 2015, the
Company had cash on deposit of approximately $7,038,000 in excess of federally insured limits of $250,000.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Related Parties: Net revenues from related parties
accounted for approximately 11%, 11% and 16% of the consolidated net revenues for the years ended June 30, 2015, 2014 and 2013,
respectively. Net management fee receivables from the related party medical practices accounted for approximately 12%, 12% and
9% of the consolidated accounts receivable for the years ended June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">See Note 3 regarding the Company’s concentrations
in the healthcare industry.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 6pt 0 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The financial statements include various estimated
fair value information at June 30, 2015 and 2014, as required by ASC topic 820, "Disclosures about Fair Value of Financial
Instruments". Such information, which pertains to the Company's financial instruments, is based on the requirements set forth
in that Statement and does not purport to represent the aggregate net fair value to the Company.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following methods and assumptions were
used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Cash and cash equivalents: The carrying amount
approximates fair value because of the short-term maturity of those instruments.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Receivable and accounts payable: The carrying
amounts approximate fair value because of the short maturity of those instruments.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Notes receivable: The carrying amount approximates
fair value because the discounted present value of the cash flow generated by the parties approximates the carrying value of the
amounts due to the Company.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Long-term debt and notes payable: The carrying
amounts of debt and notes payable approximate fair value due to the length of the maturities, the interest rates being tied to
market indices and/or due to the interest rates not being significantly different from the current market rates available to the
Company.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">All of the Company's financial instruments are
held for purposes other than trading.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 6pt 0 0; text-align: justify"><u>Recent Accounting Pronouncements </u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The FASB has issued ASU No. 2014-09, <i>Revenue
from Contracts with Customers</i>. This ASU supersedes the revenue recognition requirements in Accounting
Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The
standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.
This ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within the
reporting period and should be applied retrospectively to each prior reporting period presented or retrospectively with the
cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard
is not expected to have a material impact on the Company’s consolidated financial position and results of
operations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In July 2015, the FASB issued Accounting Standards
Update No. 2015-11, “<i>Simplifying the Measurement of Inventory</i>” (“ASU 2015-11”). ASU 2015-11 requires
an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices
in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent
measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. It
is effective for annual reporting periods beginning after December 15, 2016. The amendments should be applied prospectively with
earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of this standard is not
expected to have a material impact on the Company’s consolidated financial position and results of operations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">FASB, the Emerging Issues Task Force and the
SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2015 that will become effective in
subsequent periods; however, management does not believe that any of those updates would have significantly affected our financial
accounting measures or disclosures had they been in effect during 2015 or 2014, and it does not believe that any of those pronouncements
will have a significant impact on our consolidated financial statements at the time they become effective.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Reclassifications</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified
to conform to the current year presentation. The reclassifications did not have any effect on reported net income for any periods
presented.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL
RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s customers are concentrated
in the healthcare industry.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Accounts Receivable</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Credit risk with respect to the Company’s
accounts receivable related to product sales and service and repair fees is limited due to the customer advances received prior
to the commencement of work performed and the billing of amounts to customers as sub-assemblies are completed. Service and repair
fees are billed on a monthly or quarterly basis and the Company does not continue providing these services if accounts receivable
become past due. The Company controls credit risk with respect to accounts receivable from service and repair fees through its
credit evaluation process, credit limits, monitoring procedures and reasonably short collection terms. The Company performs ongoing
credit authorizations before a product sales contract is entered into or service and repair fees are provided.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Medical Receivable</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Medical receivables are due under fee-for-service
contracts from third party payors, such as hospitals, government sponsored healthcare programs, patient’s legal counsel and
directly from patients. Substantially all the revenue relates to patients residing in Florida. The carrying amount of the medical
receivable is reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected.
The Company continuously monitors collections from its clients and maintains an allowance for bad debts based upon the Company’s
historical collection experience. The Company determines allowances for contractual adjustments and uncollectible accounts based
on specific agings, specific payor collection issues that have been identified and based on payor classifications and historical
experience at each site.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Management and Other Fees Receivable</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s receivables from the related
and non-related professional corporations (“PCs”) substantially consist of fees outstanding under management agreements.
Payment of the outstanding fees is dependent on collection by the PCs of fees from third party medical reimbursement organizations,
principally insurance companies and health management organizations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Payment of the management fee receivables from
the PC’s may be impaired by the inability of the PC’s to collect in a timely manner their medical fees from the third
party payors, particularly insurance carriers covering automobile no-fault and workers compensation claims due to longer payment
cycles and rigorous informational requirements and certain other disallowed claims. Approximately 54%, 50% and 41%, respectively,
of the PCs’ 2015, 2014 and 2013 net revenues were derived from no-fault and personal injury protection claims. The Company
considers the aging of its accounts receivable in determining the amount of allowance for doubtful accounts. The Company generally
takes all legally available steps to collect its receivables. Credit losses associated with the receivables are provided for in
the consolidated financial statements and have historically been within management's expectations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net revenues from management and other fees
charged to the related party medical practices accounted for approximately 11%, 11% and 16%, of the consolidated net revenues for
the years ended June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Tallahassee Magnetic Resonance Imaging, PA,
Stand Up MRI of Boca Raton, PA and Stand Up MRI & Diagnostic Center, PA (all related party medical practices) entered into
a guaranty agreement, pursuant to which they cross guaranteed all management fees which are payable to the Company, which have
arisen under each individual management agreement.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following table sets forth the number of
our facilities for the years ended June 30, 2015, 2014 and 2013.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For The Year Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 55%; text-align: left; padding-left: 5.4pt">Total Facilities Owned or Managed (at Beginning of Year)</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">24</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">24</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">11</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Facilities Added by:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: 17.85pt; padding-left: 5.4pt">Acquisition</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 17.85pt; padding-left: 5.4pt">Internal development</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Managed Facilities Closed</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total Facilities Owned or Managed (at End of Year)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">24</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">24</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">24</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED
CONTRACTS</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Information relating to uncompleted contracts
as of June 30, 2015 and 2014 is as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Costs incurred on uncompleted contracts</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,861,350</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,884,984</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Estimated earnings</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,371,093</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,745,608</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,232,443</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,630,592</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Billings to date</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,693,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,013,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">539,443</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">617,592</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Included in the accompanying consolidated balance
sheets under the following captions:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 63%; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">681,660</td><td style="width: 2%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">759,809</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt">Less:  Billings in excess of costs and estimated earnings on uncompleted contracts</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">142,217</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">142,217</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">539,443</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">617,592</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 5 – INVENTORIES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Inventories included in the accompanying consolidated
balance sheets consist of:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Purchased parts, components and supplies</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,043,411</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,093,671</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Work-in-process</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">148,438</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">349,865</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,191,849</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,443,536</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 6 - PROPERTY AND EQUIPMENT</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Property and equipment, at cost, less accumulated
depreciation and amortization, at June 30, 2015 and 2014, is comprised of:</p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Diagnostic equipment under capital leases</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">620,307</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">620,307</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Diagnostic equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,396,797</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,396,797</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Research, development and demonstration equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,580,224</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,510,224</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Machinery and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,069,055</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,069,055</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Furniture and fixtures</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,550,627</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,550,627</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Leasehold improvements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,502,915</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,593,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Building</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">939,614</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">939,614</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,659,539</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32,679,772</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Accumulated depreciation and amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">18,758,344</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17,650,043</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,901,195</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,029,729</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Depreciation and amortization of property and
equipment for the years ended June 30, 2015, 2014 and 2013 was $2,259,842, $2,458,113 and $1,554,458, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Depreciation and amortization of diagnostic
equipment under capital leases for the years ended June 30, 2015, 2014 and 2013 was $0, $95,026 and $248,123, respectively. Accumulated
depreciation and amortization of diagnostic equipment under capital leases was $620,307, $620,307 and $525,281 for the years ended
June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the year ended June 30, 2015, the Company
has retired assets that were fully depreciated with a cost and accumulated depreciation basis of $1,151,541.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 7 - OTHER INTANGIBLE ASSETS</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other intangible assets, net of accumulated
amortization, at June 30, 2015 and 2014 are comprised of:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Capitalized software development costs</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">7,004,847</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">7,418,436</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Patents and copyrights</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,547,545</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,408,011</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Non-competition agreements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,100,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Customer relationships</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,452,392</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,726,447</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Accumulated amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,502,232</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,217,604</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,950,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,508,843</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Information related to the above intangible
assets for the years ended June 30, 2015, 2014 and 2013 is as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; text-align: justify; padding-left: 5.4pt">Balance – Beginning of Year</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">10,508,843</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,904,248</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,835,179</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Amounts capitalized</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">139,534</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">214,211</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,359,907</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Abandon software or patents written off</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(413,589</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(250,523</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(66,619</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Impairment of management agreement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(357,500</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,284,628</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,359,093</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(866,719</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Balance – End of Year</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,950,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,508,843</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,904,248</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="margin-top: 0; margin-bottom: 0">  </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of patents and copyrights for the
years ended June 30, 2015, 2014 and 2013 amounted to $183,272, $178,836 and $168,631, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of capitalized software development
costs for the years ended June 30, 2015, 2014 and 2013 was $325,642, $407,876 and $335,350, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of management agreement for the
years ended June 30, 2015, 2014 and 2013 amounted to $0, $0 and $100,833, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of non-competition agreements for
the years ended June 30, 2015, 2014 and 2013 amounted to $585,714, $585,714 and $195,238, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of customer relationships for the
years ended June 30, 2015, 2014 and 2013 amounted to $190,000, $186,667 and $66,667, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The estimated amortization of other intangible
assets for the five years ending June 30, 2020 and thereafter is as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">For the Years Ending June 30,</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Patents and Copyrights</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Capitalized Software Development Costs</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Non- <br />competition</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Customer Relation-ships</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,262,929</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">195,404</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">291,811</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">585,714</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">190,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,246,672</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">210,958</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">260,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">585,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,169,983</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">220,936</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">173,333</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">585,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,002,736</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">227,022</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">585,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">797,458</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">216,981</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">390,477</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,470,382</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,063,715</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,406,667</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,950,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,135,016</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">725,144</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,733,333</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,356,667</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The weighted average amortization period for
other intangible assets is 10.9 years and they have no expected residual value.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 8 - CAPITAL STOCK</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Common Stock</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Cash dividends payable on the common stock shall,
in all cases, be on a per share basis, one hundred twenty percent (120%) of the cash dividend payable on shares of Class B common
stock and three hundred sixty percent (360%) of the cash dividend payable on a share of Class C common stock.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Class B Common Stock</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Class B common stock is convertible into shares
of common stock on a one-for-one basis. Class B common stock has 10 votes per share. There were 146, 146 and 146 of such shares
outstanding at June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Class C Common Stock</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On April 3, 1995, the stockholders ratified
a proposal creating a new Class C common stock and authorized the exchange offering of three shares of Class C common stock for
each share of the Company's outstanding Class B common stock. The Class C common stock has 25 votes per share, as compared to 10
votes per share for the Class B common stock and one vote per share for the common stock. The Class C common stock was offered
on a three-for-one basis to the holders of the Class B common stock. Although having greater voting power, each share of Class
C common stock has only one-third of the rights of a share of Class B common stock to dividends and distributions. Class C common
stock is convertible into shares of common stock on a three-for-one basis.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Class A Non-Voting Preferred Stock</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On April 3, 1995, the stockholders ratified
a proposal consisting of the creation of a new class of Class A non-voting preferred stock with special dividend rights and the
declaration of a stock dividend on the Company's common stock consisting of one share of Class A non-voting preferred stock for
every five shares of common stock. The stock dividend was payable to holders of common stock on October 20, 1995. Class A non-voting
preferred stock issued pursuant to such stock dividend approximates 313,000 shares.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Class A non-voting preferred stock is entitled
to a special dividend equal to 3-1/4% of first $10 million, 4-1/2% of next $20 million and 5-1/2% on amounts in excess of $30 million
of the amount of any cash awards or settlements received by the Company in connection with the enforcement of five of the Company's
patents in its patent lawsuits, less the revised special dividend payable on the common stock with respect to one of the Company's
patents.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in">The Class A non-voting preferred stock participates
on an equal per share basis with the common stock in any dividends declared and ranks equally with the common stock on distribution
rights, liquidation rights and other rights and preferences (other than the voting rights).</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Stock Bonus Plans</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On April 23, 2010, the Board approved the 2010
Stock Bonus Plan. The plan entitles the Company to reserve 2,000,000 shares of common stock. On August 10, 2010, the Company filed
Form S-8 to register the 2,000,000 shares. As of June 30, 2015, 953,367 shares of common stock of FONAR were available for future
grant under this plan. For the years ended June 30, 2015, 2014 and 2013, 5,000, 46,708 and 67,870 shares were issued, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Options</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company has stock option plans, which provide
for the awarding of incentive and non-qualified stock options to employees, directors and consultants who may contribute to the
success of the Company. The options granted vest either immediately or ratably over a period of time from the date of grant, typically
three or four years, at a price determined by the Board of Directors or a committee of the Board of Directors, generally the fair
value of the Company's common stock at the date of grant. The options must be exercised within ten years from the date of grant.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">FONAR’s 2002 Incentive Stock Option Plan
(the “FONAR 2002 Plan”), adopted on July 1, 2002, is intended to qualify as an incentive stock option plan under Section
422A of the Internal Revenue Code of 1954, as amended. The FONAR 2002 Plan permits the issuance of stock options covering an aggregate
of 100,000 shares of common stock of FONAR. The options have an exercise price equal to the fair market value of the underlying
stock on the date the option is granted, are nontransferable, are exercisable for a period not exceeding ten years and expire upon
the voluntary termination of employment. The FONAR 2002 Plan terminated on June 30, 2012. During the year ended June 30, 2014,
6,610 options expired, therefore no options remain outstanding.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">FONAR’s 2005 Incentive Stock Option Plan
(the “FONAR 2005 Plan”), adopted on February 16, 2005,is intended to qualify as an incentive stock option plan under
Section 422A of the Internal Revenue Code of 1954, as amended. The FONAR 2005 Plan permits the issuance of stock options covering
an aggregate of 80,000 shares of common stock of FONAR. The options have an exercise price equal to the fair value of the underlying
stock on the date the option is granted, are non-transferable, are exercisable for a period not exceeding ten years, and expire
upon the voluntary termination of employment. The FONAR 2005 Plan terminated on February 14, 2015 and no options remain outstanding.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Stock option activity and weighted average exercise
prices under these plans and grants for the year ended June 30, 2015, 2014 and 2013 was as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Number of Options</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Aggregate Intrinsic Value</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; padding-left: 5.4pt">Outstanding, June 30, 2012</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">14,022</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">27.76</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Forfeited / Expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(7,412</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26.65</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Outstanding, June 30, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Forfeited / Expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,610</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">29.00</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt">Outstanding, June 30, 2014</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt">Outstanding, June 30, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Exercisable at:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">June 30, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">29.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">June 30, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">June 30, 2015</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 9 – CONTROLLING AND NONCONTROLLING
INTERESTS</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On February 13, 2013 the Company entered into
an agreement with outside investors to acquire a 50.5% controlling interest in a newly formed limited liability company, Health
Diagnostics Management LLC (HDM). According to the February 13, 2013 LLC operating agreement of HDM there are two classes of members;
Class A members and one Class B member. The Class A members have an ownership interest of 49.5% of HDM. The Class B member (HMCA)
has an ownership of 50.5% of HDM. On all matters on which members may vote every member is entitled to cast the percentage of votes
equal to their percentage of ownership interest. Profits and losses on all items of income, gain or loss, deductions or other allocations
of the Company will be allocated among the members in the same proportions as their membership interests in the Company bear to
all the Class A and Class B membership interests of the Company in the aggregate outstanding. All of the depreciation and amortization
of the assets of the Company will be allocated solely to the Class A members, unless and until their interests have been redeemed
by the Company in full pursuant to the provisions of the operating agreement. During March 2013 the Company contributed $20,200,000
to HDM and the group of outside investors contributed $19,800,000 for its non-controlling membership interest.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On March 5, 2013 HDM purchased from Health Diagnostics,
LLC (“HD”) and certain of its subsidiaries, a business managing twelve (12) Stand-Up MRI Centers and two (2) other
scanning centers located in the States of New York and Florida for a total purchase price (including consideration of $1.5 million
to outside investors) aggregating $35.9 million. Concurrently with the acquisition, HDM entered into several consulting and non-competition
agreements for a consideration of $4.1 million. The acquisition was accounted for using the purchase method in accordance with
ASC 805, “Business Combinations”. The Company recognized and measured goodwill as of the acquisition date, as the excess
of the fair value of the consideration paid over the fair value of the identified net assets acquired.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following table summarizes the estimated
fair values of the assets and liabilities assumed at the acquisition date:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 40%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 5.4pt">Management fee receivable</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">6,667,259</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Medical receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,389,953</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Prepaid expenses and other current assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,262</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Property and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,912,650</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Intangible assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,200,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Goodwill</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,767,098</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Other assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">332,949</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Other current liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,323</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Long term debt</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(273,848</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">40,000,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The purchase price was allocated to the tangible
and intangible assets and liabilities assumed based on estimates of their respective fair values at the date of acquisition with
the remaining unallocated purchase price recorded as goodwill. Management is responsible for the valuation of net assets acquired
and considered a number of factors, including valuations and appraisals, when estimating the fair values and estimated useful lives
of acquired assets and liabilities. The intangible assets, excluding goodwill, are being amortized on a straight-line basis over
their weighted average lives as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 40%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Fair Value</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 56%; padding-left: 5.4pt; text-align: left; vertical-align: bottom">Non compete</td><td style="width: 8%"> </td>
<td style="width: 1%">$</td><td style="width: 12%">4,100,000</td><td style="width: 1%"> </td><td style="width: 8%"> </td>
<td style="width: 1%"> </td><td style="width: 12%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7 years</font></td><td style="width: 1%"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: left; vertical-align: bottom">Customer relationships</td><td> </td>
<td> </td><td>3,800,000</td><td> </td><td> </td>
<td> </td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">20 years</font></td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Developed software</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,300,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5 years</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,200,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following unaudited pro forma results of
operations for the twelve months ended June 30, 2013 assumes that the above acquisitions were made at the beginning of the year
of acquisition. The unaudited pro forma information does not purport to be indicative of the results that would have been obtained
if the acquisitions had actually occurred at the beginning of the year prior to acquisition, nor of the results that may be reported
in the future.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 90%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Year ended June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 80%; text-align: left; padding-left: 5.4pt">Total Revenues – Net</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">69,723,542</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Net Income - Controlling Interests</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,442,337</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income Available to Common Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,294,377</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Net Income Available to Class A Non-Voting   Preferred Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">855,597</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income Available to Class C Common Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">292,363</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Basic Net Income Per Common Share Available to Common Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.75</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Diluted Net Income Per Common Share Available to Common Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.69</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Basic and Diluted Income Per Share - Common C</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.76</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Weighted Average Basic Shares Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,933,318</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Weighted Average Diluted Shares Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,060,822</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Weighted Average Basic and Diluted Shares Outstanding - Class C Common</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">382,513</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">HDM’s total net revenues and income from
operations for the period from the acquisition date (March 5, 2013) to June 30, 2013 was $14,834,143 and $1,958,714, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">On January 8, 2015, the Company purchased 20% of the Class A members
ownership interest at a cost of $4,971,094. The Company has a 60.4% ownership interest in HDM after this transaction.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Amount of each class of HDM members’ equity as of June
30, 2015, 2014 and 2013</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2013</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class A Members</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class B Member</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class A Members</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class B Member</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class A Members</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class B Member</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 18%; text-align: left; text-indent: -4.35pt; padding-left: 4.35pt">Opening Members’ Equity</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,659,698</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">21,113,266</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">19,526,475</td><td style="width: 1%; text-align: left"> </td><td style="width: 0%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">20,763,830</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 0%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -4.35pt; padding-left: 4.35pt">Share of Net Income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,988,915</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,704,999</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,266,473</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,566,186</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">543,225</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,397,080</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -4.35pt; padding-left: 4.35pt">Contributions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,800,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,200,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -4.35pt; padding-left: 4.35pt">Buyout</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,971,094</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -4.35pt; padding-left: 4.35pt">Distributions</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,925,350</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,774,644</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,133,250</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,216,750</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(816,750</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(833,250</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; text-indent: -4.35pt; padding-left: 4.35pt">Ending Members’ Equity</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,752,169</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">22,043,621</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">17,659,698</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,113,266</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">19,526,475</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">20,763,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On May 2, 2011, the Company completed a private
placement of equity and succeeded in raising $6,000,000. The offering consisted of Preferred Class A membership interests in a
newly formed limited liability company, Imperial Management Services, LLC (“Imperial”). The Class B membership interests
in Imperial, all of which were retained by the Company’s subsidiary, HMCA, hold a 75% equity interest in Imperial. The Class
A membership interests are entitled to receive a dividend of 18% per annum of their cash capital contribution of $6,000,000. HMCA
contributed all of its assets, together with its liabilities, to Imperial as HMCA’s capital contribution. The Imperial operating
agreement provides for the Class A members to receive priority distributions until their original capital contributions are returned.
Dividends are payable quarterly beginning August 1, 2011. On May 1, 2015, May 1, 2014 and on May 1, 2013, the Company returned
a portion of the Class A Members capital contribution in the amount of $1,125,000, $1,125,100 and $1,424,900, respectively. As
of June 30, 2015, the Company’s subsidiary, HMCA, now owns approximately 96% interest in Imperial Management Services.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amount of each class of Imperial
members’ equity as of June 30, 2015, 2014 and 2013</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">  </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%; font: 7pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2015</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2014</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="5" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June 30, 2013</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
A Members</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
B Member</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
A Members</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
B Member</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class A Members</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class B Member</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; text-indent: -4.35pt; padding-left: 4.35pt; width: 18%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Opening
Members’ Equity</font></td><td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,403,812</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,079,317</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,599,519</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,772,781</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,918,365</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 11%; text-align: right; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$3,824,945</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; text-indent: -4.35pt; padding-left: 4.35pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Share
of Net Income</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">405,634</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,921,129</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">536,913</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,306,536</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">959,254</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,947,836</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; text-indent: -4.35pt; padding-left: 4.35pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Contributions</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-left: 5.4pt">—</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; text-indent: -4.35pt; padding-left: 4.35pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Distributions</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(405,000</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(607,520</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(853,200</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-left: 5.4pt">—</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; text-indent: -4.35pt; padding-left: 4.35pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Redemption</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,125,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,125,100</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,424,900</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-bottom: 1pt; padding-left: 5.4pt; border-bottom: Black 1pt solid">—</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; text-indent: -4.35pt; padding-left: 4.35pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Ending Members’ Equity</font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,279,446</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">15,000,446</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,403,812</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,079,317</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,599,519</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2.5pt; padding-left: 5.4pt; border-bottom: Black 3pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$7,772,781</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On May 1, 2010, the Company purchased a 15.2%
interest from an unrelated party of an entity that provides management services to a diagnostic center in the New York Metropolitan
area. On January 1, 2011, the Company purchased an additional 34.8% interest by the issuance of a promissory note of $400,000.
Commencing January 1, 2011, the Company consolidates the activity of this entity. On June 1, 2013, the Company purchased from the
noncontrolling members their remaining 50% interest for $700,000.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company also has a 50% controlling interest
in an entity which the Company consolidates, that provides management services to a diagnostic center in the New York Metropolitan
area. The center began operations during January 2012. The noncontrolling interest as of June 30, 2015, 2014 and 2013 aggregated
$359,157, $531,474 and $559,221, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND
CAPITAL LEASES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Long-term debt, notes payable and capital leases
consist of the following:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 66%; text-align: justify; padding-left: 5.4pt">Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $618,337 as of June 30, 2015.</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">416,844</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">439,983</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">The revolving credit note is due by March 5, 2016. The Company can prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.  The note was paid in full September 2, 2014. The Company still has the ability to draw down on the line.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">300,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">The term loan is payable with interest only for 6 consecutive months commencing at the inception of the loan followed by 60 consecutive monthly installments, commencing October 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,149,986</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,349,994</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Note payable requiring 12 consecutive interest only payments commencing at the inception of the loan followed by 48 consecutive monthly payments, commencing May 1, 2014. The note bears interest at a rate of 4.75% per annum and is payable monthly.  The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">488,499</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">660,911</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Other (including capital leases for property and equipment).</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">134,119</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">621,758</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,189,448</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,372,646</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Current portion</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,490,146</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,890,816</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,699,302</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,481,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The maturities of long-term debt over the next
five years and thereafter are as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 30%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Years Ending June 30,</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">2,490,146</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,440,108</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,372,514</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">580,708</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32,944</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">273,028</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,189,448</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 12 - OTHER CURRENT LIABILITIES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Included in other current liabilities are the following:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Accrued salaries, commissions and payroll taxes</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">991,603</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">834,324</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Accrued interest</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117,480</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117,480</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Litigation accruals</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">521,149</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">664,349</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Sales tax payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,538,340</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,665,181</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Legal and other professional fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">344,060</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">438,730</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Accounting fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">235,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">325,139</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Purchase scanners</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">450,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Self-funded health insurance reserve</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">510,150</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">298,004</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Interest and penalty – sales tax</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,508,840</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,374,339</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Other</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">486,011</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">582,740</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,252,633</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,750,286</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 13 - COMMITMENTS AND CONTINGENCIES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Leases</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company rents its operating facilities and
certain equipment, pursuant to operating lease agreements expiring at various dates through November 2026. The leases for certain
facilities contain escalation clauses relating to increases in real property taxes as well as certain maintenance costs.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Future minimum operating lease commitments consisted
of the following at June 30, 2015:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Year Ending <br />June 30,</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Facilities And Equipment <br />(Operating Lease)*</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">3,717,939</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,191,082</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,722,882</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,129,428</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,866,277</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,094,188</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total minimum obligations</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,721,796</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">*Includes new lease for the Company’s
principal office in Melville, see subsequent events Note 20.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Rent expense for operating leases approximated
$4,266,000, $4,571,000 and $4,035,000, for the years ended June 30, 2015, 2014 and 2013, respectively. The expense for the year
ended June 30, 2013 included an expense for early termination of a lease of approximately $690,000.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company has received preliminary approval
from the Suffolk County IDA on August 27, 2015 of a 50% property tax abatement, valued at $440,000, over a 10 year period commencing
January 2017. Final approval from the IDA may come as soon as their next meeting on September 22, 2015.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">  </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Employee Benefit Plans</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company has a non-contributory 401(k) Plan
(the “401(k) Plan”). The 401(k) Plan covers all non-union employees who are at least 21 years of age with no minimum
service requirements. There were no employer contributions to the Plan for the years ended June 30, 2015, 2014 and 2013.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The stockholders of the Company approved the
2000 Employee Stock Purchase Plan (“ESPP”) at the Company’s annual stockholders’ meeting in April 2000.
The ESPP provides for eligible employees to acquire common stock of the Company at a discount, not to exceed 15%. This plan has
not been put into effect as of June 30, 2015.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Stipulation Agreements</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company has entered into stipulation agreements
with a number of its creditors that in the aggregate total $83,966, which is included in other current liabilities on the Company’s
balance sheet as of June 30, 2015. The monthly payments total $19,552.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Litigation</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company is subject to legal proceedings
and claims arising from the ordinary course of its business, including personal injury, customer contract and employment claims.
In the opinion of management, the aggregate liability, if any, with respect to such actions, will not have a material adverse effect
on the consolidated financial position or results of operations of the Company.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Golden Triangle Company v. Fonar Corporation
et al, CV10-2933. The Plaintiff contracted with the Company to purchase a scanner, and paid $1,455,500 in advance. The scanner
was never delivered, but Plaintiff never designed a site for delivery either. Alleging other damages, fraud and deceptive trade
practices, Plaintiff sought up to $5,000,000. The Company made a motion to dismiss the complaint, the outcome of which left Plaintiff
with only a cause of action for breach of contract. The claims against the individual officers and employees of the Company were
dismissed. The Company filed its answer, together with a counterclaim alleging that the Plaintiff, by attempting to overcharge
the end-customer, had damaged the Company’s reputation and ability to sell in Kuwait. The case was settled in June 2013 for
$480,000 in cash and 30,000 shares of the Company’s common stock payable in installments. The Company recorded a gain of
$755,500 on the statements of income for the year ended June 30, 2013.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Matt Malek Madison v. Fonar Corporation, United
States District Court, Northern District of California, was commenced by plaintiff on August 27, 2007 to recover a down payment
for a scanner in the amount of $300,000, with interest. The plaintiff sought costs of suit and attorney’s fees as well.
The Company answered the complaint and sued the plaintiff for breach of contract in the amount of $450,000. Although down payments
are usually expressly non-refundable in the Company’s quotations and agreements, in this case, the quotation contemplated
the sale of four scanners, and provided that the deposit would be refundable with interest, if the customer were unable to find
suitable locations in the San Francisco Bay area. The issue was whether the customer made a good faith effort to find locations;
the Company’s position was that the customer did not. The case went to trial before a judge; the parties submitted post-trial
briefs, and judgment was awarded to the plaintiff. The Company appealed the trial court’s decision, but on January 31, 2012,
the U.S. Court of Appeals for the 9th Circuit affirmed the lower court’s decision awarding the plaintiff the $300,000 deposit
with prejudgment interest from July 1, 2006. The Company sought to have the Court of Appeals reconsider the decision en banc,
(by all or a larger number of the judges on the Circuit Court of Appeals), but this was not granted. Although the case has been
concluded, the plaintiff has not taken any steps to collect the judgment. As of June 30, 2015 and 2014, $300,000 was included
in the Company’s accrued expenses.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Bonutti Research v. Fonar Corporation, Health
Management Corporation of America, Health Diagnostics, LLC et al, was commenced on December 2, 2011. Bonutti Research filed a patent
infringement action in the U.S. District Court for the Eastern District Court of New York, alleging that Fonar’s Upright®
MRI scanners infringe plaintiff’s patent which relates to the moving of a patient into the scanner. Fonar believes plaintiff’s
claims are without merit and further, that the patent is invalid. The parties have settled the case for $150,000 payable by Fonar
in twelve installments and certain licenses and covenants not to sue. The $150,000 has been recorded in the Company’s consolidated
statements of income for the year ended June 30, 2014. As of June 30, 2015, the Company has paid the $150,000.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Bolt MRI Technologies v. Fonar Corporation,
Health Management Corporation of America & Health Diagnostics, LLC, was commenced on July 22, 2013, when Bolt MRI Technologies
filed an action against Fonar Corporation, Health Management Corporation of America and Health Diagnostics, LLC alleging infringement
of the same patent which is the subject of the Bonutti case. Bolt alleged that the patent was assigned to Bolt. The settlement
of the Bonutti case covers this case as well.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Other Matters</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company is also delinquent in filing sales
tax returns for certain states, for which the Company has transacted business. The Company has recorded tax obligations of approximately
$2,538,000 plus interest and penalties of approximately $2,509,000. The Company is in the process of determining its regulatory
requirements in order to become compliant.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company maintains a self-funded health
insurance program with a stop-loss umbrella policy with a third party insurer to limit the maximum potential liability for
individual claims to $100,000 per person and for a maximum potential claim liability based on member enrollment. With respect
to this program, the Company considers historical and projected medical utilization data when estimating its health insurance
program liability and related expense. As of June 30, 2015 and 2014, the Company had approximately $510,000 and $298,000, respectively, in reserve for its self-funded health insurance programs. The reserves are included in “Other
current liabilities” in the consolidated balance sheets.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company regularly analyzes its reserves
for incurred but not reported claims, and for reported but not paid claims related to its reinsurance and self-funded insurance
programs. The Company believes its reserves are adequate. However, significant judgment is involved in assessing these reserves
such as assessing historical paid claims, average lags between the claims’ incurred date, reported dates and paid dates,
and the frequency and severity of claims. There may be differences between actual settlement amounts and recorded reserves and
any resulting adjustments are included in expense once a probable amount is known. There were no significant adjustments recorded
in the years covered by this report.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">NOTE 14 - OTHER INCOME (EXPENSE)</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Other income (expense) consists of:</p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For the Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; text-align: left; padding-left: 5.4pt">Loss on disposition of equipment</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(657,350</td><td style="width: 1%; text-align: left">)</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Loss from investment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(48,777</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Litigation settlement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,586</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">716,250</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Gain on extinguishment of debt</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">394,797</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Impairment of management agreement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(357,500</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Gain on sale of equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">557,473</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Other income (expense)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">13</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,835</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(141,958</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">394,810</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(608,599</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">725,488</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the years ended June 30, 2015, 2014 and
2013, the Company paid $516,385, $668,475 and $389,907 for interest, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the years ended June 30, 2015, 2014 and
2013, the Company paid $143,996, $349,501 and $277,000 for income taxes, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 16 – DUE TO RELATED PARTY MEDICAL
PRACTICES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In June 2009, an entity owned by the Company’s
Chairman of the Board, Tallahassee Scanning Services PA, sold its Upright® MRI scanning system to the Company for $550,000
in exchange for 35 monthly payments of $18,769 to be made over a three year period, commencing October 18, 2009 including interest
at a rate of 10.41% per annum. The Company used this scanning system to fulfill a sales order with an unrelated customer. The unpaid
balance of as of June 30, 2015 and 2014 was $134,880.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Other Related Party Transactions</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A son of the Company’s Chairman of the Board is one of the minority owners of Tritech Healthcare Management, which performs
billing and collection services with respect to No-Fault and Workers’ Compensation claims of the Company’s clients.
The monthly fee charged to the Company is $85,000.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Bensonhurst MRI Limited Partnership, in which a son of the Company’s
Chairman of the Board holds an interest, is party to an agreement with the Company for the service and maintenance of its
Upright MRI Scanner for a price of $110,000 per annum.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Integrity Healthcare Management Holdings, LLC, of which a son of the
Company’s Chairman of the Board is an owner, has a 12% interest in Watchtower Entrepreneurs LLC. During fiscal 2015,
Watchtower agreed to sell equipment and components to the Company for a total of $700,000.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 17 - SEGMENT AND RELATED INFORMATION</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company provides segment data in accordance
with the provisions of ASC topic 280, “Disclosures about Segments of an Enterprise and Related Information”.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company operates in two industry segments
- manufacturing and the servicing of medical equipment and management of diagnostic imaging centers.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Summarized financial information concerning
the Company’s reportable segments is shown in the following table:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Manufacturing and Servicing of Medical Equipment</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Management of Diagnostic Imaging Centers</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Totals</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Fiscal 2015:</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; text-align: left; padding-left: 5.4pt">Net revenues from external customers</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,480,295</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">57,570,701</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">69,050,996</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Intersegment net revenues *</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,005,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,005,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">504,895</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">12,394,982</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">12,899,877</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">306,183</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,238,287</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,544,470</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Compensatory element of stock  issuances</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">53,200</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">53,200</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Total identifiable assets</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">18,997,142</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">57,494,935</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">76,492,077</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">209,534</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">61,308</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">270,842</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; height: 11pt">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="margin-top: 0; margin-bottom: 0">Fiscal 2014:</p></td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net revenues from external  customers</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">12,070,563</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">56,434,914</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">68,505,477</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Intersegment net revenues *</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,963,750</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,963,750</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">468,793</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">11,833,876</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">12,302,669</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">410,728</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,406,477</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,817,205</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Compensatory element of stock  issuances</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">223,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">223,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Total identifiable assets</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">18,093,789</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">58,696,054</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">76,789,843</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">234,275</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">600,633</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">834,908</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="margin-top: 0; margin-bottom: 0">Fiscal 2013:</p></td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net revenues from external  customers</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">14,891,075</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">34,250,739</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">49,141,814</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Intersegment net revenues *</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,200,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,200,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">139,390</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">7,396,357</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">7,535,747</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">541,551</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,879,626</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,421,177</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Compensatory element of stock  issuances</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">415,021</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">415,021</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Total identifiable assets</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">15,071,225</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">58,079,425</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">73,150,650</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">237,636</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">25,170,303</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">25,407,939</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0pt; text-align: justify; text-indent: 44pt">* Amounts eliminated
in consolidation</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Export Product Sales</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s areas of operations are
principally in the United States. The Company had export sales of medical equipment amounting to 74.2%, 42.4% and 3.8% of product
sales revenues to third parties for the years ended June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The foreign product sales, as a percentage of
product sales to unrelated parties, were made to customers in the following countries:</p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 50%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For the Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">United Arab Emirates</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">-%</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">29.8</td><td style="width: 1%; text-align: left">%</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">-%</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Switzerland</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12.4</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">England</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.6</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Germany</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">71.9</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.1</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Libya</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.2</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.1</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74.2</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">42.4</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.8</td><td style="text-align: left">%</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Foreign Service and Repair Fees</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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
7.4%, 8.8% and 8.2% of consolidated net service and repair fees for the years ended June 30, 2015, 2014 and 2013, respectively.
The foreign service and repair fees, as a percentage of total service and repair fees, were provided principally to the following
countries:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 50%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For the Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; padding-left: 5.4pt">Spain</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">1.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">1.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">0.9</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Puerto Rico</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.0</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Switzerland</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.7</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.1</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Germany</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.7</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.4</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">England</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.7</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.6</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.0</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Holland</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.6</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.2</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Greece</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Australia</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.2</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.1</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.0</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">7.4</td><td style="padding-bottom: 2.5pt; text-align: left">%</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">8.8</td><td style="padding-bottom: 2.5pt; text-align: left">%</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">8.2</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company does not have any material assets
outside of the United States.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 18 – ALLOWANCE FOR DOUBTFUL ACCOUNTS</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following represents a summary of allowance
for doubtful accounts for the years ended June 30, 2015, 2014 and 2013, respectively:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0"></p>
<p style="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid">Description</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance</p>
<p style="margin-top: 0; margin-bottom: 0">June 30, 2014</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="4" style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Additions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Deductions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance</p>
<p style="margin-top: 0; margin-bottom: 0">June 30, 2015</p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 41%; text-align: left">Accounts receivable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">257,362</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%">(1)</td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">105,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">362,362</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Management and other fees receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,901,619</td><td style="text-align: left"> </td><td> </td>
<td>(1)</td>
<td style="text-align: left"> </td><td style="text-align: right">2,370,032</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,271,651</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Management and other fees receivable - related medical practices</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Medical receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,032,067</td><td style="text-align: left"> </td><td> </td>
<td>(1)</td>
<td style="text-align: left"> </td><td style="text-align: right">12,770,249</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,343,160</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,459,156</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Advance and notes to related  parties</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid">Description</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance</p>
<p style="margin-top: 0; margin-bottom: 0">June 30, 2013</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="4" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Additions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Deductions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance</p>
<p style="margin-top: 0; margin-bottom: 0">June 30, 2014</p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 41%; text-align: left">Accounts receivables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">257,362</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%">(1)</td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">257,362</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Management and other fees receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,095,320</td><td style="text-align: left"> </td><td> </td>
<td>(1)</td>
<td style="text-align: left"> </td><td style="text-align: right">1,806,299</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,901,619</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Management and other fees receivable - related medical practices</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Medical receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,584,669</td><td style="text-align: left"> </td><td> </td>
<td>(1)</td>
<td style="text-align: left"> </td><td style="text-align: right">10,333,082</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,114,316  </td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,032,067</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Advance and notes to related parties</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid">Description</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance</p>
<p style="margin-top: 0; margin-bottom: 0">June 30, 2012</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Additions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Deductions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance</p>
<p style="margin-top: 0; margin-bottom: 0">June 30, 2013</p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left">Accounts receivables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,852,987</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">(1)</td><td style="width: 10%; text-align: right">(92,454</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,503,171</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">257,362</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Management and other fees receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,458,345</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">(1)</td><td style="text-align: right">1,636,975</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,095,320</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Management and other fees receivable - related medical practices</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Medical receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">(1)</td><td style="text-align: right">2,584,669</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,584,669</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Advance and notes to related parties</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">239,791</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,412</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Notes receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">65,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">65,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0">  </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 -22pt; text-align: justify; text-indent: 0.5in">(1) Included in provision
for bad debts.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 20 – SUBSEQUENT EVENTS</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company evaluates events that have occurred
after the balance sheet date, but before the consolidated financial statements are issued.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Effective July 1, 2015, the Company restructured
the corporate organization of the management of diagnostic imaging centers segment of our business. The reorganization was structured
to more completely integrate the operations of Health Management Corporation of America and HDM. Imperial contributed all of its
assets (which were utilized in the business of Health Management Corporation of America) to HDM and received a 24.2% interest in
HDM. Health Management Corporation of America retained a direct ownership interest of 45.8% in HDM, and the original investors
in HDM retained a 30.0% ownership interest in the newly expanded HDM. The entire management of diagnostic imaging centers business
segment is now being conducted by HDM.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During August 2015, the Company entered into
a new lease for its principal office in Melville, New York. The lease commences on August 1, 2015 and expires on November 30, 2026.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Principles of Consolidation</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The consolidated financial statements include
the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships. The operating activities of subsidiaries
are included in the accompanying consolidated statements from the date of acquisition. All significant intercompany accounts and
transactions have been eliminated in consolidation.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The preparation of the consolidated financial
statements in conformity with accounting principles generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
in the consolidated financial statements and accompanying notes. The most significant estimates relate to receivable allowances,
intangible assets, income taxes and related tax asset valuation allowances, useful lives of property and equipment, contingencies,
revenue recognition and the assessment of litigation. In addition, healthcare industry reforms and reimbursement practices will
continue to impact the Company's operations and the determination of contractual and other allowance estimates. Actual results
could differ from those estimates.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Inventories</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Inventories consist of purchased parts, components
and supplies, as well as work-in-process, and are stated at the lower of cost, determined on the first-in, first-out method, or
market.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Property and Equipment</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Property and equipment procured in the normal
course of business is stated at cost. Property and equipment purchased in connection with an acquisition is stated at its estimated
fair value, generally based on an appraisal. Property and equipment is being depreciated for financial accounting purposes using
the straight-line method over their estimated useful lives. Leasehold improvements are being amortized over the shorter of the
useful life or the remaining lease term. Upon retirement or other disposition of these assets, the cost and related accumulated
depreciation of these assets are removed from the accounts and the resulting gains or losses are reflected in the results of operations.
Expenditures for maintenance and repairs are charged to operations. Renewals and betterments are capitalized. Maintenance and repair
expenses totaled approximately $1,200,000, $1,037,000 and $598,000 for the years ended June 30, 2015, 2014 and 2013, respectively.
The estimated useful lives in years are generally as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 80%; text-align: justify; padding-left: 5.4pt">Diagnostic equipment under capital lease</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">2.5</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Diagnostic equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5–13</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Research, development and demonstration equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-7</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Machinery and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2-7</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Furniture and fixtures</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-9</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Leasehold improvements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2–10</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Building</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Other Intangible Assets</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">1) Capitalized Software Development Costs</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Capitalization of software development costs
begins upon the establishment of technological feasibility. Technological feasibility for the Company’s computer software
is generally based upon achievement of a detail program design free of high risk development issues and the completion of research
and development on the product hardware in which it is to be used. The establishment of technological feasibility and the ongoing
assessment of recoverability of capitalized computer software development costs require considerable judgment by management with
respect to certain external factors, including, but not limited to, technological feasibility, anticipated future gross revenue,
estimated economic life and changes in software and hardware technology. Prior to reaching technological feasibility those costs
are expensed as incurred and included in research and development.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization of capitalized software development
costs commences when the related products become available for general release to customers. Amortization is provided on a product
by product basis. The annual amortization is the greater of the amount computed using (a) the ratio that current gross revenue
for a product bears to the total of current and anticipated future gross revenue for that product, or (b) the straight-line method
over the remaining estimated economic life of the product.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company periodically performs reviews of
the recoverability of such capitalized software development costs. At the time a determination is made that capitalized amounts
are not recoverable, based on the estimated cash flows to be generated from the applicable software, any remaining capitalized
amounts are written off.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">2) Patents and Copyrights</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization is calculated on the straight-line
basis over a period ranging from 15 to 17 years.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">3) Non-Competition Agreements</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The non-competition agreements are being amortized
on the straight line basis over the length of the agreement (7 years).</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">4) Customer Relationships</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amortization is calculated on the straight line
basis over 20 years.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Revenue on sales contracts for scanners, included
in “product sales” in the accompanying consolidated statements of operations, is recognized under the percentage-of-completion
method in accordance with FASB ASC 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts”.
The Company manufactures its scanners under specific contracts that provide for progress payments. Production and installation
take approximately three to six months.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Revenue on scanner service contracts is recognized
on the straight-line method over the related contract period, usually one year.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Revenue from sales of other items is recognized
upon shipment.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Revenue under management contracts is recognized
based upon contractual agreements for management services rendered by the Company primarily under various long-term agreements
with various medical providers (the "PCs"). As of June 30, 2015, the Company has twenty management agreements of which
three are with PC’s owned by Raymond V. Damadian, M.D., President and Chairman of the Board of FONAR (“the Related
medical practices”) and seventeen are with PC’s, which are all located in the state of New York (“the New York
PC’s”), owned by two unrelated radiologists. The contractual fees for services rendered to the PCs consists of fixed
monthly fees per diagnostic imaging facility ranging from approximately $100,000 to $242,000. All fees are re-negotiable at the
anniversary of the agreements and each year thereafter. Revenue under lease contracts is recognized based upon contractual agreements
for the leasing of medical equipment primarily under long term contracts to various unrelated PC’s. The lease fee for the
medical equipment consists of a fixed monthly fee of $2,000. All fees are re-negotiable at the anniversary of the agreements and
each year thereafter.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Patient fee revenue, net of contractual allowance
and discounts, consist of net patient fees received from insurance companies, third party payors (including federal and state agencies
under Medicare and Medicaid programs), hospitals and patients themselves based mainly upon established contractual billing rates,
less allowances for contractual adjustments and discounts. Patient fee revenue is recorded in the period in which services are
provided.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s patient fee revenues, net
of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2015, 2014 and 2013 are summarized
in the following table.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For the Year Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Commercial Insurance/ Managed Care</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,398,589</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,217,088</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,360,536</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -8.1pt; padding-left: 8.1pt">Medicare/Medicaid</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,187,690</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,443,020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">541,602</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Workers' Compensation/Personal Injury</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,978,243</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,369,956</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,597,416</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt">Other</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,589,076</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,277,128</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,982,311</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Patient Fee Revenue, net of contractual allowances and discounts</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,153,598</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,307,192</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,481,865</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt">Provision for Bad Debts</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(12,770,249</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(10,333,082</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,584,669</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -8.1pt; padding-left: 8.1pt">Net Patient Fee for Revenue</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,383,349</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,974,110</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,897,196</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Research and Development Costs</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Research and development costs are charged to
expense as incurred. The costs of equipment that are acquired or constructed for research and development activities, and have
alternative future uses (either in research and development, marketing or production), are classified as property and equipment
and depreciated over their estimated useful lives.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Advertising Costs</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Advertising costs are expensed as incurred.
Advertising expense approximated $894,000, $889,000 and $835,000 for the years ended June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Shipping Costs</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s shipping and handling costs
are included in revenue from product sales and the related expense included in costs related to product sales is $9,293, $1,885
and $5,838 for the years ended June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Deferred tax assets and liabilities are determined
based on the difference between the financial statement carrying amounts and tax basis of assets and liabilities using enacted
tax rates in effect in the years in which the differences are expected to reverse.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Customer Advances</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Cash advances and progress payments received
on sales orders are reflected as customer advances until such time as revenue recognition occurs.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Earnings Per Share</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Basic earnings per share (“EPS”)
is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding
during the period. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class Method”, the Company
used the Two-Class method for calculating basic earnings per share and applied the if converted method in calculating diluted earnings
per share for the years ended June 30, 2015, 2014 and 2013.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Diluted EPS reflects the potential dilution
from the exercise or conversion of all dilutive securities into common stock based on the average market price of common shares
outstanding during the period. For the years ended June 30, 2015, 2014 and 2013, diluted EPS for common shareholders includes
127,504 shares upon conversion of Class C Common.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; padding-bottom: 1pt">Basic</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class C Common  Stock</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Numerator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt">Net income available to common stockholders</td><td style="width: 1%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 14%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">12,910,651</td><td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 1%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 14%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">12,071,670</td><td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 1%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 14%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">213,672</td><td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,050,632</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,050,632</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt">Basic income per common share</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2.13</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2.00</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">0.56</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center">Diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted average shares outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,050,632</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">382,513</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt">Class C Common Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">127,504</td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,178,136</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">1.95</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">0.56</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: right; border-bottom: Black 1pt solid">June 30, 2014</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center; padding-bottom: 1pt">Basic</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Class C Common Stock</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Numerator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Net income available to common stockholders</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,396,130</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,720,030</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">172,189</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,009,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,009,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Basic income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.73</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.62</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.45</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center">Diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Weighted average shares outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,009,822</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">382,513</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; width: 49%">Class C Common Stock</td><td style="padding-bottom: 1pt; width: 1%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 14%"> </td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 1%"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: right; width: 14%">127,504</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 1%"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: right; width: 14%">—  </td><td style="padding-bottom: 1pt; width: 1%"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,137,326</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.58</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.45</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center; padding-bottom: 1pt">Basic</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class C Common Stock</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Numerator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; text-align: left; padding-bottom: 2.5pt">Net income Available to common stockholders</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 14%; border-bottom: Black 2.5pt double; text-align: right">8,678,542</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 14%; border-bottom: Black 2.5pt double; text-align: right">8,107,367</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 14%; border-bottom: Black 2.5pt double; text-align: right">145,467</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">5,933,318</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">5,933,318</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Basic income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.37</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center">Diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">5,933,318</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Class C Common Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">127,504</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,060,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.34</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company considers all short-term highly
liquid investments with a maturity of three months or less when purchased to be cash equivalents.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Concentration of Credit Risk</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Cash: The Company maintains its cash and cash
equivalents with various financial institutions, which exceed federally insured limits throughout the year. At June 30, 2015, the
Company had cash on deposit of approximately $7,038,000 in excess of federally insured limits of $250,000.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Related Parties: Net revenues from related parties
accounted for approximately 11%, 11% and 16% of the consolidated net revenues for the years ended June 30, 2015, 2014 and 2013,
respectively. Net management fee receivables from the related party medical practices accounted for approximately 12%, 12% and
9% of the consolidated accounts receivable for the years ended June 30, 2015, 2014 and 2013, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">See Note 3 regarding the Company’s concentrations
in the healthcare industry.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 6pt 0 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The financial statements include various estimated
fair value information at June 30, 2015 and 2014, as required by ASC topic 820, "Disclosures about Fair Value of Financial
Instruments". Such information, which pertains to the Company's financial instruments, is based on the requirements set forth
in that Statement and does not purport to represent the aggregate net fair value to the Company.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following methods and assumptions were
used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Cash and cash equivalents: The carrying amount
approximates fair value because of the short-term maturity of those instruments.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Receivable and accounts payable: The carrying
amounts approximate fair value because of the short maturity of those instruments.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Notes receivable: The carrying amount approximates
fair value because the discounted present value of the cash flow generated by the parties approximates the carrying value of the
amounts due to the Company.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Long-term debt and notes payable: The carrying
amounts of debt and notes payable approximate fair value due to the length of the maturities, the interest rates being tied to
market indices and/or due to the interest rates not being significantly different from the current market rates available to the
Company.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">All of the Company's financial instruments are
held for purposes other than trading.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 6pt 0 0; text-align: justify"><u>Recent Accounting Pronouncements </u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The FASB has issued ASU No. 2014-09, <i>Revenue
from Contracts with Customers</i>. This ASU supersedes the revenue recognition requirements in Accounting
Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The
standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.
This ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within the
reporting period and should be applied retrospectively to each prior reporting period presented or retrospectively with the
cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard
is not expected to have a material impact on the Company’s consolidated financial position and results of
operations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In July 2015, the FASB issued Accounting Standards
Update No. 2015-11, “<i>Simplifying the Measurement of Inventory</i>” (“ASU 2015-11”). ASU 2015-11 requires
an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices
in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement
is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. It is effective
for annual reporting periods beginning after December 15, 2016. The amendments should be applied prospectively with earlier application
permitted as of the beginning of an interim or annual reporting period. The adoption of this standard is not expected to have a
material impact on the Company’s consolidated financial position and results of operations.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">FASB, the Emerging Issues Task Force and the
SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2015 that will become effective in
subsequent periods; however, management does not believe that any of those updates would have significantly affected our financial
accounting measures or disclosures had they been in effect during 2015 or 2014, and it does not believe that any of those pronouncements
will have a significant impact on our consolidated financial statements at the time they become effective.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Reclassifications</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified
to conform to the current year presentation. The reclassifications did not have any effect on reported net income for any periods
presented.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Inventories included in the accompanying consolidated
balance sheets consist of:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Purchased parts, components and supplies</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,043,411</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,093,671</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Work-in-process</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">148,438</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">349,865</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,191,849</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,443,536</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other intangible assets, net of accumulated
amortization, at June 30, 2015 and 2014 are comprised of:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Capitalized software development costs</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">7,004,847</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">7,418,436</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Patents and copyrights</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,547,545</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,408,011</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Non-competition agreements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,100,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Customer relationships</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,452,392</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,726,447</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Accumulated amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,502,232</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,217,604</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,950,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,508,843</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Information related to the above intangible
assets for the years ended June 30, 2015, 2014 and 2013 is as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; text-align: justify; padding-left: 5.4pt">Balance – Beginning of Year</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">10,508,843</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,904,248</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,835,179</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Amounts capitalized</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">139,534</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">214,211</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,359,907</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Abandon software or patents written off</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(413,589</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(250,523</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(66,619</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Impairment of management agreement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(357,500</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,284,628</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,359,093</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(866,719</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Balance – End of Year</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,950,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,508,843</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,904,248</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The estimated amortization of other intangible
assets for the five years ending June 30, 2020 and thereafter is as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">For the Years Ending June 30,</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Patents and Copyrights</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Capitalized Software Development Costs</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Non- <br />competition</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Customer Relation-ships</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,262,929</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">195,404</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">291,811</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">585,714</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">190,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,246,672</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">210,958</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">260,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">585,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,169,983</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">220,936</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">173,333</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">585,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,002,736</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">227,022</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">585,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">797,458</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">216,981</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">390,477</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">190,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,470,382</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,063,715</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,406,667</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,950,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,135,016</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">725,144</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,733,333</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,356,667</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Property and equipment, at cost, less accumulated
depreciation and amortization, at June 30, 2015 and 2014, is comprised of:</p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Diagnostic equipment under capital leases</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">620,307</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">620,307</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Diagnostic equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,396,797</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,396,797</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Research, development and demonstration equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,580,224</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,510,224</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Machinery and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,069,055</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,069,055</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Furniture and fixtures</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,550,627</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,550,627</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Leasehold improvements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,502,915</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,593,148</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Building</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">939,614</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">939,614</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,659,539</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32,679,772</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Accumulated depreciation and amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">18,758,344</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17,650,043</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,901,195</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,029,729</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Stock option activity and weighted average exercise
prices under these plans and grants for the year ended June 30, 2015, 2014 and 2013 was as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Number of Options</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Aggregate Intrinsic Value</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; padding-left: 5.4pt">Outstanding, June 30, 2012</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">14,022</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">27.76</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Forfeited / Expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(7,412</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26.65</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Outstanding, June 30, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Forfeited / Expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,610</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">29.00</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt">Outstanding, June 30, 2014</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt">Outstanding, June 30, 2015</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Exercisable at:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">June 30, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">29.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">June 30, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">June 30, 2015</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following table summarizes the estimated
fair values of the assets and liabilities assumed at the acquisition date:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 40%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 5.4pt">Management fee receivable</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">6,667,259</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Medical receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,389,953</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Prepaid expenses and other current assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,262</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Property and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,912,650</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Intangible assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,200,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Goodwill</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,767,098</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Other assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">332,949</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Other current liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,323</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Long term debt</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(273,848</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">40,000,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Long-term debt, notes payable and capital leases
consist of the following:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 66%; text-align: justify; padding-left: 5.4pt">Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $618,337 as of June 30, 2015.</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">416,844</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">439,983</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">The revolving credit note is due by March 5, 2016. The Company can prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.  The note was paid in full September 2, 2014. The Company still has the ability to draw down on the line.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">300,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">The term loan is payable with interest only for 6 consecutive months commencing at the inception of the loan followed by 60 consecutive monthly installments, commencing October 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,149,986</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,349,994</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Note payable requiring 12 consecutive interest only payments commencing at the inception of the loan followed by 48 consecutive monthly payments, commencing May 1, 2014. The note bears interest at a rate of 4.75% per annum and is payable monthly.  The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">488,499</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">660,911</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Other (including capital leases for property and equipment).</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">134,119</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">621,758</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,189,448</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,372,646</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Current portion</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,490,146</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,890,816</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,699,302</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,481,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The maturities of long-term debt over the next
five years and thereafter are as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 30%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Years Ending June 30,</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">2,490,146</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,440,108</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,372,514</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">580,708</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32,944</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">273,028</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,189,448</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Components of the current benefit for income
taxes are as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="11" style="text-align: center">Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Current:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; padding-left: 5.4pt">Federal</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">114,683</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">310,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">125,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">State</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,313</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,093</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">71,001</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Federal deferred taxes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,353,124</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,280,044</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,336,454</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">State deferred taxes</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(403,393</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(402,361</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(137,438</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,612,521</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,348,312</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,277,891</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A reconciliation of the federal statutory income
tax rate to the Company's effective tax rate as reported is as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">Taxes at federal statutory rate</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">35.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">34.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">34.0</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">State and local income taxes (benefit), net of federal benefit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.0</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.0</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.0</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Permanent differences</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.2</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(0.9</td><td style="text-align: left">)%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.6</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">(Decrease) increase in the valuation allowance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(65.4</td><td style="text-align: left">)%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(65.5</td><td style="text-align: left">)%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(73.2</td><td style="text-align: left">)%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">True ups</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3.2</td><td style="padding-bottom: 1pt; text-align: left">)%</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2.8</td><td style="padding-bottom: 1pt; text-align: left">)%</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3.0</td><td style="padding-bottom: 1pt; text-align: left">)%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Effective income tax rate</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(27.4</td><td style="padding-bottom: 2.5pt; text-align: left">)%</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(29.2</td><td style="padding-bottom: 2.5pt; text-align: left">)%</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(35.6</td><td style="padding-bottom: 2.5pt; text-align: left">)%</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Significant components of the Company's deferred
tax assets and liabilities at June 30, 2015 and 2014 are as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Deferred tax assets:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Allowance for doubtful accounts</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,607,107</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,961,016</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Non-deductible accruals</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">115,346</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">65,108</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Net operating carryforwards</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49,170,420</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">54,900,136</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Tax credits</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,751,692</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,644,097</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Property and equipment and depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">111,190</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">195,408</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Inventory</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,093,401</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">130,822</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">63,849,156</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">67,896,587</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(55,425,850</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(62,156,300</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total deferred tax assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,423,306</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,740,287</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Capitalized software development costs</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(510,492</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(583,990</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total deferred tax liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(510,492</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(583,990</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,912,814</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,156,297</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Included in other current liabilities are the following:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Accrued salaries, commissions and payroll taxes</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">991,603</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">834,324</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Accrued interest</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117,480</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117,480</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Litigation accruals</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">521,149</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">664,349</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Sales tax payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,538,340</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,665,181</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Legal and other professional fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">344,060</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">438,730</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Accounting fees</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">235,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">325,139</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Purchase scanners</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">450,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Self-funded health insurance reserve</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">510,150</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">298,004</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Interest and penalty – sales tax</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,508,840</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,374,339</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Other</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">486,011</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">582,740</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,252,633</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,750,286</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Future minimum operating lease commitments consisted
of the following at June 30, 2015:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Year Ending <br />June 30,</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Facilities And Equipment <br />(Operating Lease)*</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: right">2016</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">3,717,939</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2017</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,191,082</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,722,882</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right">2019</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,129,428</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right">2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,866,277</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,094,188</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total minimum obligations</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,721,796</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">*Includes new lease for the Company’s
principal office in Melville, see subsequent events Note 20.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Other income (expense) consists of:</p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For the Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; text-align: left; padding-left: 5.4pt">Loss on disposition of equipment</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(657,350</td><td style="width: 1%; text-align: left">)</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Loss from investment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(48,777</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Litigation settlement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,586</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">716,250</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Gain on extinguishment of debt</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">394,797</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Impairment of management agreement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(357,500</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Gain on sale of equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">557,473</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Other income (expense)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">13</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,835</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(141,958</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">394,810</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(608,599</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">725,488</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Summarized financial information concerning
the Company’s reportable segments is shown in the following table:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Manufacturing and Servicing of Medical Equipment</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Management of Diagnostic Imaging Centers</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Totals</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Fiscal 2015:</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 49%; text-align: left; padding-left: 5.4pt">Net revenues from external customers</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,480,295</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">57,570,701</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">69,050,996</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Intersegment net revenues *</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,005,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,005,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">504,895</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">12,394,982</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">12,899,877</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">306,183</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,238,287</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,544,470</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Compensatory element of stock  issuances</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">53,200</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">53,200</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Total identifiable assets</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">18,997,142</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">57,494,935</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">76,492,077</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">209,534</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">61,308</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">270,842</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; height: 11pt">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="margin-top: 0; margin-bottom: 0">Fiscal 2014:</p></td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net revenues from external  customers</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">12,070,563</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">56,434,914</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">68,505,477</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Intersegment net revenues *</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,963,750</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,963,750</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">468,793</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">11,833,876</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">12,302,669</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">410,728</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,406,477</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,817,205</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Compensatory element of stock  issuances</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">223,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">223,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Total identifiable assets</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">18,093,789</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">58,696,054</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">76,789,843</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">234,275</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">600,633</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">834,908</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="margin-top: 0; margin-bottom: 0">Fiscal 2013:</p></td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net revenues from external  customers</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">14,891,075</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">34,250,739</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">49,141,814</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Intersegment net revenues *</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,200,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,200,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income from operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">139,390</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">7,396,357</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">7,535,747</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Depreciation and amortization</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">541,551</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,879,626</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,421,177</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Compensatory element of stock  issuances</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">415,021</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">415,021</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Total identifiable assets</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">15,071,225</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">58,079,425</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">73,150,650</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Capital expenditures</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">237,636</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">25,170,303</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">25,407,939</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0pt; text-align: justify; text-indent: 44pt">* Amounts eliminated
in consolidation</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following represents a summary of allowance
for doubtful accounts for the years ended June 30, 2015, 2014 and 2013, respectively:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid">Description</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="4" style="padding-bottom: 1pt; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Additions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Deductions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 41%; text-align: left">Accounts receivable</td><td style="width: 1%"> </td>
<td style="width: 4%; text-align: left">$</td><td style="width: 10%; text-align: right">257,362</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%">(1)</td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">105,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">362,362</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Management and other fees receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,901,619</td><td style="text-align: left"> </td><td> </td>
<td>(1)</td>
<td style="text-align: left"> </td><td style="text-align: right">2,370,032</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,271,651</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Management and other fees receivable - related medical practices</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Medical receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,032,067</td><td style="text-align: left"> </td><td> </td>
<td>(1)</td>
<td style="text-align: left"> </td><td style="text-align: right">12,770,249</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,343,160</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,459,156</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Advance and notes to related  parties</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid">Description</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2013</td><td style="padding-bottom: 1pt"> </td>
<td colspan="4" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Additions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Deductions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 43%; text-align: left">Accounts receivables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">257,362</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%">(1)</td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">257,362</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Management and other fees receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,095,320</td><td style="text-align: left"> </td><td> </td>
<td>(1)</td>
<td style="text-align: left"> </td><td style="text-align: right">1,806,299</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,901,619</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Management and other fees receivable - related medical practices</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Medical receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,584,669</td><td style="text-align: left"> </td><td> </td>
<td>(1)</td>
<td style="text-align: left"> </td><td style="text-align: right">10,333,082</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,114,316  </td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,032,067</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Advance and notes to related parties</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td><td> </td>
<td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid">Description</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Additions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Deductions</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Balance June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 42%; text-align: left">Accounts receivables</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,852,987</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">(1)</td><td style="width: 10%; text-align: right">(92,454</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,503,171</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">257,362</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Management and other fees receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,458,345</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">(1)</td><td style="text-align: right">1,636,975</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,095,320</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Management and other fees receivable - related medical practices</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">403,047</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Medical receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">(1)</td><td style="text-align: right">2,584,669</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,584,669</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Advance and notes to related parties</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">239,791</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,412</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">202,379</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Notes receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">65,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">65,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0"></p>
<p style="margin: 0">  </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 -22pt; text-align: justify; text-indent: 0.5in">(1) Included in provision
for bad debts.</p>
2.13
1.73
2.00
1.62
0.56
0.45
2.75
0.76
0.31
0.27
1.46
1.37
0.38
0.39
0.38
0.41
0.33
0.89
0.64
1.95
1.58
0.56
0.45
2.69
0.76
0.31
0.26
1.34
0.38
0.39
0.37
0.40
0.33
0.86
0.62
2043411
2093671
148438
349865
620307
620307
17396797
17396797
3580224
3510224
2069055
2069055
2550627
2550627
4502915
5593148
939614
939614
31659539
32679772
18758344
17650043
7004847
7418436
4547545
4408011
10502232
9217604
8950160
10508843
2135016
725144
2733333
3356667
10508843
11904248
3835179
139534
214211
9359907
-413589
-250523
-66619
8950160
10508843
11904248
6610
14022
29
27.76
26.65
114683
310000
125000
29313
24093
71001
6607107
6961016
115346
65108
6751692
5644097
111190
195408
63849156
67896587
-55425850
-62156300
8423306
5740287
-510492
-583990
-510492
-583990
7912814
5156297
991603
834324
117480
117480
521149
664349
2538340
2665181
344060
438730
235000
325139
486011
582740
3717939
3191082
2722882
2129428
8094188
21721796
2005000
1963750
2005000
1963750
1200000
1200000
12899877
12302669
504895
12394982
468793
11833876
7535747
139390
7396357
3544470
3817205
306183
3238287
410728
3406477
2421177
541551
1879626
53200
223000
53200
223000
415021
415021
76492077
76789843
18997142
57494935
18093789
58696054
73150650
15071225
58079425
270842
834908
209534
61308
234275
600633
25407939
237636
25170303
6667259
7389953
31
31
607
606
38
38
1820979
1877932
3939140
9549316
10082631
10841935
28153598
24307192
4398589
4217088
1187690
1443020
15978243
13369956
6589076
5277128
7481865
541602
3597416
1982311
1360536
34805627
34839969
21493599
7381725
7620835
7859944
1882230
1067120
3656635
2189373
2496985
3213420
25220
27242
32603
20970116
20851065
12998243
5397818
5134553
3515706
1812398
1760821
1438560
13459408
15388239
12501621
2475032
1806299
1544521
56151119
56202808
14430000
14721000
41606067
14547000
12778000
13494000
14314000
13680000
14390000
12899877
12302669
7535747
-702095
-884541
-500362
225270
238928
217598
12817862
11048457
7978471
15430383
13396769
12910651
2519732
10396130
3000639
2519000
2147000
10256362
8678542
1577820
3256000
3620000
3455000
3048000
6200000
4582000
-2519732
-3000639
-1577820
0.44
0.45
1037000
1037000
598000
-12770249
-10333082
-2584669
15383349
13974110
4897196
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Goodwill</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Generally accepted accounting principles in
the United States require the Company to perform a goodwill impairment test annually and more frequently when negative conditions
or a triggering event arises. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit’s
carrying amount, including goodwill to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds
its fair value, goodwill is considered potentially impaired and a second step is performed to measure the amount of impairment
loss, if any.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Acquired assets and assumed liabilities</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Pursuant to ASC No. 805-10-25, if the initial
accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, but during
the allowed measurement period not to exceed one year from the acquisition date, the Company retrospectively adjusts the provisional
amounts recognized at the acquisition date by means of adjusting the amount recognized for goodwill.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Long-Lived Assets</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company periodically assesses the recoverability
of long-lived assets, including property and equipment and intangibles, other than goodwill, when there are indications of potential
impairment, based on estimates of undiscounted future cash flows. The amount of impairment is calculated by comparing anticipated
discounted future cash flows with the carrying value of the related asset. In performing this analysis, management considers such
factors as current results, trends, and future prospects, in addition to other economic factors.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><u>Allowance for Doubtful Accounts – Patient
Fee</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company provides for medical receivables
that could become uncollectible by establishing an allowance for doubtful accounts in order to adjust medical receivables to estimated
net realizable value. In evaluating the collectability of medical receivables, the Company considers a number of factors, including
the age of the account, historical collection experiences, payor type, current economic conditions and other relevant factors.
There are various factors that impact collection trends, such as payor mix, changes in the economy, increase burden on copayments
to be made by patients with insurance and business practices related to collection efforts. These factors continuously change
and can have an impact on collection trends and the estimation process.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The estimated useful lives in years are generally as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 80%; text-align: justify; padding-left: 5.4pt">Diagnostic equipment under capital lease</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">2.5</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Diagnostic equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5–13</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Research, development and demonstration equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-7</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Machinery and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2-7</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Furniture and fixtures</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3-9</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">Leasehold improvements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2–10</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">Building</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s patient fee revenues, net
of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2015, 2014 and 2013 are summarized
in the following table.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For the Year Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Commercial Insurance/ Managed Care</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,398,589</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,217,088</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,360,536</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -8.1pt; padding-left: 8.1pt">Medicare/Medicaid</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,187,690</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,443,020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">541,602</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Workers' Compensation/Personal Injury</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,978,243</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,369,956</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,597,416</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt">Other</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,589,076</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,277,128</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,982,311</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.1pt; padding-left: 8.1pt">Patient Fee Revenue, net of contractual allowances and discounts</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,153,598</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,307,192</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,481,865</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8.1pt; padding-left: 8.1pt">Provision for Bad Debts</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(12,770,249</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(10,333,082</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,584,669</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -8.1pt; padding-left: 8.1pt">Net Patient Fee for Revenue</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,383,349</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,974,110</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,897,196</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following table sets forth the number of
our facilities for the years ended June 30, 2015, 2014 and 2013.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For The Year Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 55%; text-align: left; padding-left: 5.4pt">Total Facilities Owned or Managed (at Beginning of Year)</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">24</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">24</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 8%; text-align: right">11</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Facilities Added by:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: 17.85pt; padding-left: 5.4pt">Acquisition</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 17.85pt; padding-left: 5.4pt">Internal development</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Managed Facilities Closed</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total Facilities Owned or Managed (at End of Year)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">24</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">24</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">24</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The intangible assets, excluding goodwill, are being amortized on a straight-line basis over
their weighted average lives as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 40%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Fair Value</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
<td style="width: 56%; padding-left: 5.4pt; text-align: left; vertical-align: bottom">Non compete</td><td style="width: 8%"> </td>
<td style="width: 1%">$</td><td style="width: 12%">4,100,000</td><td style="width: 1%"> </td><td style="width: 8%"> </td>
<td style="width: 1%"> </td><td style="width: 12%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7 years</font></td><td style="width: 1%"> </td></tr>
<tr style="text-align: center; background-color: White; vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: left; vertical-align: bottom">Customer relationships</td><td> </td>
<td> </td><td>3,800,000</td><td> </td><td> </td>
<td> </td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">20 years</font></td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Developed software</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,300,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">5 years</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,200,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following unaudited pro forma results of
operations for the twelve months ended June 30, 2013 assumes that the above acquisitions were made at the beginning of the year
of acquisition. The unaudited pro forma information does not purport to be indicative of the results that would have been obtained
if the acquisitions had actually occurred at the beginning of the year prior to acquisition, nor of the results that may be reported
in the future.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 90%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Year ended June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 80%; text-align: left; padding-left: 5.4pt">Total Revenues – Net</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">69,723,542</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Net Income - Controlling Interests</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,442,337</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income Available to Common Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,294,377</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Net Income Available to Class A Non-Voting   Preferred Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">855,597</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income Available to Class C Common Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">292,363</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Basic Net Income Per Common Share Available to Common Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.75</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Diluted Net Income Per Common Share Available to Common Stockholders</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.69</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Basic and Diluted Income Per Share - Common C</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.76</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Weighted Average Basic Shares Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,933,318</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Weighted Average Diluted Shares Outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,060,822</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Weighted Average Basic and Diluted Shares Outstanding - Class C Common</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">382,513</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">On January 8, 2015, the Company purchased 20% of the Class A members
ownership interest at a cost of $4,971,094. The Company has a 60.4% ownership interest in HDM after this transaction.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Amount of each class of HDM members’ equity as of June
30, 2015, 2014 and 2013</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2013</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class A Members</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class B Member</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class A Members</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class B Member</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class A Members</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Class B Member</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 13%; text-align: left; text-indent: -4.35pt; padding-left: 4.35pt">Opening Members’ Equity</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,659,698</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">21,113,266</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">19,526,475</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">20,763,830</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -4.35pt; padding-left: 4.35pt">Share of Net Income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,988,915</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,704,999</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,266,473</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,566,186</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">543,225</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,397,080</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -4.35pt; padding-left: 4.35pt">Contributions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">19,800,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,200,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -4.35pt; padding-left: 4.35pt">Buyout</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,971,094</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: -4.35pt; padding-left: 4.35pt">Distributions</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,925,350</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,774,644</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,133,250</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,216,750</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(816,750</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(833,250</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; text-indent: -4.35pt; padding-left: 4.35pt">Ending Members’ Equity</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,752,169</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">22,043,621</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">17,659,698</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,113,266</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">19,526,475</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">20,763,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On May 2, 2011, the Company completed a private
placement of equity and succeeded in raising $6,000,000. Amount of each class of Imperial Management Services, LLC members’
equity as of June 30, 2015, 2014 and 2013</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">  </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%; font: 7pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2015</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June
30, 2014</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="5" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June 30, 2013</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
A Members</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
B Member</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
A Members</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class
B Member</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class A Members</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class B Member</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 13%; text-align: justify; text-indent: -0.05in; padding-left: 8.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Opening
Members’ Equity</font></td><td style="width: 2%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,403,812</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,079,317</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 11%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,599,519</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">7,772,781</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">4,918,365</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="width: 2%"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="width: 12%; text-align: right; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$3,824,945</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -0.05in; padding-left: 8.1pt; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Share
of Net Income</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">405,634</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,921,129</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">536,913</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,306,536</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">959,254</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-left: 5.4pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,947,836</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; text-indent: -0.05in; padding-left: 8.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Contributions</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-left: 5.4pt">—</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; text-indent: -0.05in; padding-left: 8.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Distributions</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(405,000</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(607,520</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(853,200</font></td><td style="text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-left: 5.4pt">—</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: -0.05in; padding-left: 8.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Redemption</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,125,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,125,100</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(1,424,900</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-bottom: 1pt; padding-left: 5.4pt; border-bottom: Black 1pt solid">—</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -0.05in; padding-left: 8.1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Ending
Members’ Equity</font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">1,279,446</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">15,000,446</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">2,403,812</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">11,079,317</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3,599,519</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2.5pt; padding-left: 5.4pt; border-bottom: Black 3pt double"><font style="font: 10pt Arial, Helvetica, Sans-Serif">$7,772,781</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The foreign product sales, as a percentage of
product sales to unrelated parties, were made to customers in the following countries:</p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 50%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For the Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">United Arab Emirates</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">-%</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">29.8</td><td style="width: 1%; text-align: left">%</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">-%</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Switzerland</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12.4</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">England</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.6</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Germany</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">71.9</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.1</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Libya</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.2</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.1</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74.2</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">42.4</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.8</td><td style="text-align: left">%</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The foreign service and repair fees, as a percentage
of total service and repair fees, were provided principally to the following countries:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 50%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">For the Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; padding-left: 5.4pt">Spain</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">1.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">1.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">0.9</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Puerto Rico</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.0</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Switzerland</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.7</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.1</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Germany</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.7</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.4</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">England</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.7</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.6</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.0</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Holland</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.6</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.2</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Greece</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Australia</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.2</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.1</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.0</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">7.4</td><td style="padding-bottom: 2.5pt; text-align: left">%</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">8.8</td><td style="padding-bottom: 2.5pt; text-align: left">%</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">8.2</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
4100000
4100000
3800000
3800000
-357500
-1284628
-1359093
-866719
1767098
1767098
1767098
510492
583990
480000
258400
300000
150000
135592
95623
120976
13272917
13390923
7539144
-19501
-80499
2339
3955
1885
11000
68943
-567914
-699555
-270482
628033
127504
127504
127504
1262929
195404
291811
585714
190000
1246672
210958
260000
585714
190000
1169983
220936
173333
585714
190000
1002736
227022
585714
190000
3470382
1063715
2406667
2490146
2890816
5699302
8481830
1093401
130822
9200000
16294377
855597
292363
2612521
2348312
2277891
74.2
42.4
71.9
2.2
0.1
12.4
0.2
29.8
3.8
3.6
0.1
0.1
7.4
8.8
1.3
0.6
2.6
1.7
0.4
0.7
1.0
1.2
0.7
0.1
1.2
0.2
1.0
1.1
1.1
0.2
1.1
8.2
1.1
2.0
0.9
1.0
2.2
1.0
894000
889000
835000
9293
1885
5838
250000
7038000
0.11
0.11
0.16
13271651
403047
15459156
7458345
403047
239791
10901619
403047
14032067
202379
257362
362362
257362
9095320
403047
202379
2584669
1852987
65000
-1114316
11343160
202379
1503171
37412
65000
105000
1806299
2370032
10333082
12770249
1636975
-92454
2584669
5000
46708
67870
100000
0
35
34
34
6
6
6
0.2
-0.9
0.6
-65.4
-65.5
-76.2
-27.4
-29.2
-35.6
3544470
3817205
2421177
P10Y328D
4266000
4571000
4035000
13586
716250
2538000
2509000
Fonar Corporation
0000355019
10-K
2015-06-30
false
--06-30
No
No
Yes
Accelerated Filer
FY
2015
8423306
510492
49170420
54900136
122926000
1133000
6730000
6392000
13
-4835
-141958
394810
-608599
725488
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Earnings Per Share</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="11" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">June 30, 2015</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; padding-bottom: 1pt">Basic</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class C Common  Stock</font></td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Numerator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 47%; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt">Net income available to common stockholders</td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">12,910,651</td><td style="width: 3%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 1%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="width: 2%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">12,071,670</td><td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 4%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="width: 2%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 13%; border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">213,672</td><td style="width: 1%; padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,050,632</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,050,632</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt">Basic income per common share</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2.13</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2.00</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">0.56</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center">Diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif">Weighted average shares outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,050,632</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">382,513</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt">Class C Common Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">127,504</td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">6,178,136</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">1.95</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">0.56</td><td style="padding-bottom: 2.5pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: right; border-bottom: Black 1pt solid">June 30, 2014</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center; padding-bottom: 1pt">Basic</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Class C Common Stock</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Numerator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Net income available to common stockholders</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,396,130</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,720,030</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">172,189</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,009,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,009,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Basic income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.73</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.62</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.45</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center">Diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Weighted average shares outstanding</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,009,822</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">382,513</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; width: 46%">Class C Common Stock</td><td style="padding-bottom: 1pt; width: 2%"> </td>
<td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 12%"> </td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 2%"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: right; width: 13%">127,504</td><td style="padding-bottom: 1pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 1pt; width: 4%"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td><td style="border-bottom: Black 1pt solid; text-align: right; width: 15%">—  </td><td style="padding-bottom: 1pt"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,137,326</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.58</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.45</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">  </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center; padding-bottom: 1pt">Basic</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Common Stock</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Class C Common Stock</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Numerator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-bottom: 2.5pt">Net income Available to common stockholders</td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 12%; border-bottom: Black 2.5pt double; text-align: right">8,678,542</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 13%; border-bottom: Black 2.5pt double; text-align: right">8,107,367</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 4%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 15%; border-bottom: Black 2.5pt double; text-align: right">145,467</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">5,933,318</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">5,933,318</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Basic income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.37</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center">Diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Weighted average shares outstanding</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">5,933,318</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Class C Common Stock</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">127,504</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total Denominator for diluted earnings per share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">6,060,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">382,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Diluted income per common share</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.34</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
273028
2490146
2440108
2372514
580708
8189448
P5Y
P13Y
P2Y6M
P3Y
P7Y
P2Y
P7Y
P3Y
P9Y
P2Y
P10Y
P28Y
3507204
3426982
3790981
4450125
9082319
8807856
14057962
11970388
606
598
590
1
2
8
1
30600
10000
30599
40000000
1861350
1884984
539443
617592
-2693000
-3013000
1371093
1745608
6610
-7412
9200000
4100000
3800000
1300000
1937813
1926813
416844
439983
0
300000
7149986
9349994
488499
660911
621758
134119
P7Y
P20Y
P5Y
12
2
11
2000000
1151541
0.505
19800000
20200000
14000000
0.04
3000000
12
2
35900000
1500000
4100000
0.96
Cash dividends payable on the common stock shall, in all cases, be on a per share basis, one hundred twenty percent (120%) of the cash dividend payable on shares of Class B common stock and three hundred sixty percent (360%) of the cash dividend payable on a share of Class C common stock.
On April 3, 1995, the stockholders ratified a proposal consisting of the creation of a new class of Class A non-voting preferred stock with special dividend rights and the declaration of a stock dividend on the Companys common stock consisting of one share of Class A non-voting preferred stock for every five shares of common stock. The stock dividend was payable to holders of common stock on October 20, 1995. The Class A non-voting preferred stock is entitled to a special dividend equal to 3-1/4% of first $10 million, 4-1/2% of next $20 million and 5-1/2% on amounts in excess of $30 million of the amount of any cash awards or settlements received by the Company in connection with the enforcement of five of the Companys patents in its patent lawsuits, less the revised special dividend payable on the common stock with respect to one of the Companys patents. The Class A non-voting preferred stock participates on an equal per share basis with the common stock in any dividends declared and ranks equally with the common stock on distribution rights, liquidation rights and other rights and preferences (other than the voting rights).
On April 3, 1995, the stockholders ratified a proposal creating a new Class C common stock and authorized the exchange offering of three shares of Class C common stock for each share of the Companys outstanding Class B common stock. The Class C common stock was offered on a three-for-one basis to the holders of the Class B common stock. Although having greater voting power, each share of Class C common stock has only one-third of the rights of a share of Class B common stock to dividends and distributions. Class C common stock is convertible into shares of common stock on a three-for-one basis.
Class B common stock is convertible into shares of common stock on a one-for-one basis.
The Class C common stock has 25 votes per share, as compared to 10 votes per share for the Class B common stock and one vote per share for the common stock.
The Class A non-voting preferred stock has no voting rights.
Class B common stock has 10 votes per share.
Class A non-voting preferred stock issued pursuant to such stock dividend approximates 313,000 shares.
There were 146 and 146 of such shares outstanding at June 30, 2014 and 2013, respectively.
6000000
1125100
1125100
1424900
4510000
1109000
0
0
0
19552
510000
298000
100000
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><u>Deferred Rent</u></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Rent expense is recorded on the straight-line method based on the
total minimum rent payments required over the term of the lease. The cumulative difference between the lease expense recorded under
this method and the contractual lease payment terms is recorded as deferred rent.</p>
11000000
0.0475
60
0.495
60.4
<p style="margin: 0pt"><font style="font: 8pt Arial, Helvetica, Sans-Serif">Golden Triangle Company v. Fonar Corporation et al,
CV10-2933. The Plaintiff contracted with the Company to purchase a scanner, and paid $1,455,500 in advance. The scanner was never
delivered, but Plaintiff never designed a site for delivery either. Alleging other damages, fraud and deceptive trade practices,
Plaintiff sought up to $5,000,000. The Company made a motion to dismiss the complaint, the outcome of which left Plaintiff with
only a cause of action for breach of contract. The claims against the individual officers and employees of the Company were dismissed.
The Company filed its answer, together with a counterclaim alleging that the Plaintiff, by attempting to overcharge the end-customer,
had damaged the Company’s reputation and ability to sell in Kuwait. The case was settled in June 2013 for $480,000 in cash
and 30,000 shares of the Company’s common stock payable in installments. The Company recorded a gain of $755,500 on the statements
of income for the year ended June 30, 2013.</font></p>
<p style="margin: 0pt"><font style="font: 8pt Arial, Helvetica, Sans-Serif">Shapiro v. Fonar Corporation, New York Supreme Court,
Suffolk County. Previously, The Company and Dr. Shapiro had settled an action commenced in Nassau County under the same name.
The amount remaining payable under the settlement agreement according to The Company’s records is $258,400, but the payment
and timing of the payment was dependent on obtaining an order for an Upright® MRI Scanner for the Company and the making
of installment payments thereunder by the customer. Briefly stated, the balance of $258,400 was and is not yet due. Dr. Shapiro
claims that the Company was in breach of the settlement agreement and seeks payment of no less than $307,000 plus interest and
attorneys’ fees. The Company believes it has scrupulously observed the terms of the settlement agreement and that Dr. Shapiro’s
claims are without merit. The Company answered the Complaint and the one is now in discovery.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 8pt Arial, Helvetica, Sans-Serif">Matt
Malek Madison v. Fonar Corporation, United States District Court, Northern District of California, was commenced by plaintiff
on August 27, 2007 to recover a down payment for a scanner in the amount of $300,000, with interest. The plaintiff sought costs
of suit and attorney’s fees as well. The Company answered the complaint and sued the plaintiff for breach of contract in
the amount of $450,000. Although down payments are usually expressly non-refundable in the Company’s quotations and agreements,
in this case, the quotation contemplated the sale of four scanners, and provided that the deposit would be refundable with interest,
if the customer were unable to find suitable locations in the San Francisco Bay area. The issue was whether the customer made
a good faith effort to find locations; the Company’s position was that the customer did not. The case went to trial before
a judge; the parties submitted post-trial briefs, and judgment was awarded to the plaintiff. The Company appealed the trial court’s
decision, but on January 31, 2012, the U.S. Court of Appeals for the 9th Circuit affirmed the lower court’s decision awarding
the plaintiff the $300,000 deposit with prejudgment interest from July 1, 2006. The Company sought to have the Court of Appeals
reconsider the decision en banc, (by all or a larger number of the judges on the Circuit Court of Appeals), but this was not granted.
Although the case has been concluded, the plaintiff has not taken any steps to collect the judgment. As of June 30, 2015 and 2014,
$300,000 was included in the Company’s accrued expenses.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 8pt Arial, Helvetica, Sans-Serif">Bonutti
Research v. Fonar Corporation, Health Management Corporation of America, Health Diagnostics, LLC et al, was commenced on December
2, 2011. Bonutti Research filed a patent infringement action in the U.S. District Court for the Eastern District Court of New
York, alleging that Fonar’s Upright® MRI scanners infringe plaintiff’s patent which relates to the moving of a
patient into the scanner. Fonar believes plaintiff’s claims are without merit and further, that the patent is invalid. The
parties have settled the case for $150,000 payable by Fonar in twelve installments and certain licenses and covenants not to sue.
The $150,000 has been recorded in the Company’s consolidated statements of income for the year ended June 30, 2014. As of
June 30, 2015, the Company has paid the $150,000.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 8pt Arial, Helvetica, Sans-Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 8pt Arial, Helvetica, Sans-Serif">Bolt
MRI Technologies v. Fonar Corporation, Health Management Corporation of America & Health Diagnostics, LLC, was commenced on
July 22, 2013, when Bolt MRI Technologies filed an action against Fonar Corporation, Health Management Corporation of America
and Health Diagnostics, LLC alleging infringement of the same patent which is the subject of the Bonutti case. Bolt alleged that
the patent was assigned to Bolt. The settlement of the Bonutti case covers this case as well.</font></p>
30000
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">NOTE 11 - INCOME TAXES</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">ASC topic 740 prescribes a recognition threshold
and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken
in a corporate tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon
examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit
recognized and measured pursuant to the interpretation are referred to as unrecognized benefits. A liability is recognized (or
amount of net operating loss carryforward or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents
an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result
of applying the provisions of ASC topic 740.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In accordance with ASC topic 740, interest costs
related to unrecognized tax benefits are required to be calculated (if applicable) and would be classified as “Interest expense,
net. Penalties if incurred would be recognized as a component of “Selling, general and administrative” expenses.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company files corporate income tax returns
in the United States (federal) and in various state and local jurisdictions. In most instances, the Company is no longer subject
to federal, state and local income tax examinations by tax authorities for years prior to 2009.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company has recorded a deferred tax asset
of $8,423,306 and a deferred tax liability of $510,492 as of June 30, 2015, primarily relating to net operating loss carryforwards
of approximately $122,926,000 available to offset future taxable income through 2034. The net operating losses begin to expire
in 2019 for federal tax purposes and in 2015 for state income tax purposes.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The ultimate realization of deferred tax assets
is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible.
The Company considers projected future taxable income and tax planning strategies in making this assessment. At present, the Company
does have a sufficient history of income and anticipates profitability in the coming years and has concluded that it is more-likely-than-not
that the Company will be able to realize a portion of its tax benefits in the near future and therefore a valuation allowance was
established for the partial value of the deferred tax asset.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A valuation allowance will be maintained until
sufficient positive evidence exists to support the reversal of the remainder of the valuation. Should the Company continue to remain
profitable in future periods with supportable trends, the valuation allowance will be reversed accordingly.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Components of the current benefit for income
taxes are as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 60%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="11" style="text-align: center">Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Current:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; padding-left: 5.4pt">Federal</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">114,683</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">310,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">125,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">State</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,313</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,093</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">71,001</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Federal deferred taxes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,353,124</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,280,044</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,336,454</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">State deferred taxes</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(403,393</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(402,361</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(137,438</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,612,521</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,348,312</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,277,891</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A reconciliation of the federal statutory income
tax rate to the Company's effective tax rate as reported is as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Years Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">Taxes at federal statutory rate</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">35.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">34.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">34.0</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">State and local income taxes (benefit), net of federal benefit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.0</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.0</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.0</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Permanent differences</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.2</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(0.9</td><td style="text-align: left">)%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.6</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">(Decrease) increase in the valuation allowance</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(65.4</td><td style="text-align: left">)%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(65.5</td><td style="text-align: left">)%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(73.2</td><td style="text-align: left">)%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">True ups</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3.2</td><td style="padding-bottom: 1pt; text-align: left">)%</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2.8</td><td style="padding-bottom: 1pt; text-align: left">)%</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3.0</td><td style="padding-bottom: 1pt; text-align: left">)%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Effective income tax rate</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(27.4</td><td style="padding-bottom: 2.5pt; text-align: left">)%</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(29.2</td><td style="padding-bottom: 2.5pt; text-align: left">)%</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(35.6</td><td style="padding-bottom: 2.5pt; text-align: left">)%</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As of June 30, 2015, the Company has net operating
loss (“NOL”) carryforwards of approximately $122,926,000 that will be available to offset future taxable income. The
utilization of certain of the NOLs is limited by separate return limitation year rules pursuant to Section 1502 of the Internal
Revenue Code.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company has, for federal income tax purposes,
research and development tax credit carryforwards aggregating $4,510,000. The Company also has $1,109,000 in alternative minimum
tax credits.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In addition, for New York State income tax purposes,
the Company has tax credit carryforwards aggregating approximately $1,133,000 which, are accounted for under the flow-through method.
The tax credit carryforwards expire during the years ending June 30, 2015 to June 30, 2034.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Significant components of the Company's deferred
tax assets and liabilities at June 30, 2015 and 2014 are as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Deferred tax assets:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Allowance for doubtful accounts</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,607,107</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,961,016</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Non-deductible accruals</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">115,346</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">65,108</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Net operating carryforwards</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49,170,420</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">54,900,136</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Tax credits</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,751,692</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,644,097</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Property and equipment and depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">111,190</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">195,408</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Inventory</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,093,401</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">130,822</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">63,849,156</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">67,896,587</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(55,425,850</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(62,156,300</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total deferred tax assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,423,306</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,740,287</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Capitalized software development costs</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(510,492</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(583,990</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total deferred tax liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(510,492</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(583,990</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,912,814</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,156,297</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The valuation allowance for deferred tax assets
decreased by approximately $6,730,000 during the year ended June 30, 2015 and decreased by approximately $6,392,000 during the
year ended June 30, 2014.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
0.12
0.12
0.09
2000000
0.5
0.152
0.348
0.2
.5
700000
400000
4971094
700000
The Company also has a 50% controlling interest in an entity which the Company consolidates, that provides management services to a diagnostic center in the New York Metropolitan area.
8423306
5740287
8950160
10508843
236920
234581
-31495
-38828
50783513
45906592
110000
110000
110000
7939524
7670484
2704758
394810
-608599
725488
9448798
9951736
7870727
12032015
38392742
25311608
30600
-2756517
-2682405
-2473892
2475032
1806299
1544521
-394797
32944
7333
15992
7333
15992
15993
15993
17
3
20
242000
100000
2000
0.54
0.5
0.41
0.11
0.11
0.16
620307
620307
525281
6610
14834143
1958714
359157
531474
559221
953367
0
690000
.5
440000
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 8pt Arial, Helvetica, Sans-Serif">The
stockholders of the Company approved the 2000 Employee Stock Purchase Plan (“ESPP”) at the Company’s annual stockholders’
meeting in April 2000. The ESPP provides for eligible employees to acquire common stock of the Company at a discount, not to exceed
15%. This plan has not been put into effect as of June 30, 2015.</font></p>
755500
300000
300000
516385
668475
389907
143996
349501
277000
.742
0.424
0.038
.074
.088
.082
.242
.458
.3
382513
382513
382513
-1125000
-1125100
-1424900
-1125000
-1125100
-1125000
-1125100
-1424900
-1424900
109950
531825
109950
45265
531820
5
19800000
700000
14689646
-40000000
109950
531825
357500
-755500
797458
216981
390477
190000
-1125000
-1125100
-1424900
1279446
15000446
2403812
11079317
3599519
7772781
10752169
17659698
22043621
21113266
19526475
20763830
-405000
-607520
-853200
-3925350
-4133250
-4774644
-4216750
-816750
-833250
19800000
20200000
405634
3921129
536913
3306536
959254
3947836
1988915
2266473
5704999
4566186
543225
1397080
2403812
11079317
3599519
7772781
4918365
3824945
17659698
19526475
21113266
20763830
-4971094
<p style="margin-top: 0; margin-bottom: 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 66%; text-align: justify; padding-left: 5.4pt">Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $618,337 as of June 30, 2015.</td>
</tr></table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"><tr style="vertical-align: bottom; background-color: White"><td style="text-align: justify; padding-left: 5.4pt">The revolving credit note is due by March 5, 2016. The Company can prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.  The note was paid in full September 2, 2014. The Company still has the ability to draw down on the line.</td></tr></table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"><tr style="vertical-align: bottom; background-color: rgb(204,238,255)"><td style="text-align: justify; padding-left: 5.4pt">The term loan is payable with interest only for 6 consecutive months commencing at the inception of the loan followed by 60 consecutive monthly installments, commencing October 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td></tr></table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"><tr style="vertical-align: bottom; background-color: White"><td style="text-align: justify; padding-left: 5.4pt">Note payable requiring 12 consecutive interest only payments commencing at the inception of the loan followed by 48 consecutive monthly payments, commencing May 1, 2014. The note bears interest at a rate of 4.75% per annum and is payable monthly.  The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.</td></tr></table>
Other (including capital leases for property and equipment).
-403393
-402361
-137438
-2353124
-2280044
-2336454
-3.2
-2.8
2508840
2374339
510150
298004
1866277
-357500
-48777
0.505
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Quarterly Financial Data (Unaudited)</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">(000’s omitted, except
per share data)</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">September 30, 2014</td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">December 31, 2014</td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">March 31, 2015</td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">June 30, 2015</td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">Total</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 33%; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Total  Revenues – Net</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">17,985</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">17,092</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">17,096</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">16,878</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">69,051</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Total Costs and Expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,547</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,494</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,430</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,680</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">56,151</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Net Income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,256</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,455</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,519</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,200</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,430</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Basic Net Income Per Common Share Available to Common Stockholders</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.39</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.41</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.31</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.89</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2.00</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Diluted Net Income Per Common Share Available to Common Stockholders</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.39</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.40</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.31</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.86</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1.95</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -8.85pt; padding-left: 8.85pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">September 30, 2013</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">December 31, 2013</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">March 31, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">June 30, 2014</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Total</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Total  Revenues – Net</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">16,831</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">17,609</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">17,040</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">17,025</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">68,505</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Total Costs and Expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,778</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,314</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,721</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,390</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">56,203</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Net Income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,620</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,048</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,147</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,582</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,397</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Basic Net Income Per Common Share Available to Common Stockholders</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.38</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.33</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.27</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.64</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1.62</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Diluted Net Income Per Common Share Available to Common Stockholders</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.37</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.33</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.62</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1.58</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Information relating to uncompleted contracts
as of June 30, 2015 and 2014 is as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-left: 5.4pt">Costs incurred on uncompleted contracts</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,861,350</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,884,984</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Estimated earnings</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,371,093</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,745,608</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,232,443</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,630,592</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: Billings to date</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,693,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,013,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">539,443</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">617,592</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Included in the accompanying consolidated balance
sheets under the following captions:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">As of June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2015</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 63%; text-align: left; text-indent: -8.85pt; padding-left: 8.85pt">Costs and estimated earnings in excess of billings on uncompleted contracts</td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">681,660</td><td style="width: 2%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">759,809</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8.85pt; padding-left: 8.85pt">Less:  Billings in excess of costs and estimated earnings on uncompleted contracts</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">142,217</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">142,217</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">539,443</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">617,592</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
178836
183272
407876
325642
0
0
585714
585714
186667
190000
168631
335350
100833
195238
66667
-557473
657350
-4627851
-4965770
-4627851
-4965770
-1799950
-1799950
19800000
19800000
-4971094
-4971094
-564315
-564315
-4971094
-564315
142217
-190561
-268261
253559
142217
142217
-1041214
295219
-414402
24
24
11
0
0
14
0
1
0
24
24
24
0
1
1
450000
40000
557473
-657350
469198
659759
40000000
-273848
127504
127504
127504
On May 2, 2011, the Company completed a private
placement of equity and succeeded in raising $6,000,000.