NOTE 17 - SEGMENT AND RELATED INFORMATION

12 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

NOTE 17 - SEGMENT AND RELATED INFORMATION

FONAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2017, 2016 and 2015

NOTE 17 - SEGMENT AND RELATED INFORMATION

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

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

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

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

	Manufacturing and Servicing of Medical Equipment			Management of Diagnostic Imaging Centers		Totals
Fiscal 2017:
Net revenues from external customers	$	11,219,188		$	66,817,398	$	78,036,586
Intersegment net revenues *	$	1,200,000		$	—	$	1,200,000
(Loss) Income from operations	$	(2,292,312	)	$	21,388,392	$	19,096,080
Depreciation and amortization	$	324,550		$	3,209,014	$	3,533,564
Compensatory element of stock  issuances	$	2,397,276		$	—	$	2,397,276
Total identifiable assets	$	28,772,363		$	69,658,676	$	98,431,039
Capital expenditures	$	212,983		$	2,793,331	$	3,006,314
Fiscal 2016:
Net revenues from external customers	$	10,783,618		$	62,584,592	$	73,368,210
Intersegment net revenues *	$	2,140,000		$	—	$	2,140,000
(Loss) Income from operations	$	(1,979,497	)	$	16,335,113	$	14,355,616
Depreciation and amortization	$	320,843		$	2,976,446	$	3,297,289
Compensatory element of stock  issuances	$	2,006		$	—	$	2,006
Total identifiable assets	$	28,241,501		$	56,646,105	$	84,887,606
Capital expenditures	$	437,695		$	387,593	$	825,288
Fiscal 2015:
Net revenues from external customers	$	11,480,295		$	57,570,701	$	69,050,996
Intersegment net revenues *	$	2,005,000		$	—	$	2,005,000
Income from operations	$	504,895		$	12,394,982	$	12,899,877
Depreciation and amortization	$	306,183		$	3,238,287	$	3,544,470
Compensatory element of stock  issuances	$	53,200		$	—	$	53,200
Total identifiable assets	$	18,997,142		$	57,494,935	$	76,492,077
Capital expenditures	$	209,534		$	61,308	$	270,842

* Amounts eliminated in consolidation

Export Product Sales

The Company’s areas of operations are principally in the United States. The Company had export sales of medical equipment amounting to 55.9%, 19.6% and 74.2% of product sales revenues to third parties for the years ended June 30, 2017, 2016 and 2015, respectively.

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

	For the Years Ended June 30,
	2017			2016			2015
United Arab Emirates		45.4	%		-%			-%
Switzerland		—			—			2.2
Canada		—			0.3			0.1
England		4.8			18.5			—
Germany		—			.6			71.9
Puerto Rico		5.7			.2			—
		55.9	%		19.6	%		74.2	%

Foreign Service and Repair Fees

The Company’s areas of service and repair are principally in the United States. The Company had foreign revenues of service and repair of medical equipment amounting to 4.6%, 5.8% and 7.4% of consolidated net service and repair fees for the years ended June 30, 2017, 2016 and 2015, respectively. Foreign service and repair fees, as a percentage of total service and repair fees, were provided principally to the following countries:

	For the Years Ended June 30,
	2017			2016			2015
Spain		-%			0.3	%		1.0	%
Puerto Rico		1.2			1.5			1.2
Switzerland		0.2			0.3			0.7
Germany		1.4			1.5			0.7
England		0.5			0.5			1.7
Holland		—			—			0.6
Canada		0.1			0.3			0.1
Greece		0.2			0.2			0.2
Australia		1.0			1.2			1.2
		4.6	%		5.8	%		7.4	%

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