NOTE 16 - SEGMENT AND RELATED INFORMATION

12 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

NOTE 16 - SEGMENT AND RELATED INFORMATION

FONAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2019, 2018 and 2017

NOTE 16 - 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			Management of Diagnostic Imaging
Fiscal 2019:	Equipment			Center		Totals
Net revenues from external customers	$	10,013,394		$	77,179,493	$	87,192,887
Intersegment net revenues *	$	907,084		$	—	$	907,084
(Loss) Income from operations	$	(3,419,944	)	$	25,554,136	$	22,134,192
Depreciation and amortization	$	370,001		$	3,466,490	$	3,836,491
Compensatory element of stock  issuances	$	1,990,380		$	—	$	1,990,380
Total identifiable assets	$	25,065,808		$	105,198,093	$	130,263,901
Capital expenditures	$	746,768		$	2,737,081	$	3,483,849
Fiscal 2018:
Net revenues from external customers	$	9,837,269		$	71,678,725	$	81,515,994
Intersegment net revenues *	$	901,250		$	—	$	901,250
(Loss) Income from operations	$	(2,982,778	)	$	22,666,989	$	19,684,211
Depreciation and amortization	$	353,307		$	3,546,544	$	3,899,851
Compensatory element of stock  issuances	$	1,954,744		$	—	$	1,954,744
Total identifiable assets	$	32,364,298		$	85,946,647	$	118,310,945
Capital expenditures	$	346,608		$	2,540,169	$	2,886,777
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	$	29,103,809		$	69,658,676	$	98,762,566
Capital expenditures	$	212,983		$	2,793,331	$	3,006,314

* 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 5.3%, 41.5% and 55.9% of product sales revenues to third parties for the years ended June 30, 2019, 2018 and 2017, 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,
	2019			2018			2017
United Arab Emirates		—	%		7.1	%		45.4	%
Canada		.3			—			—
England		.3			29.9			4.8
Germany		—			4.5			—
Puerto Rico		4.7			—			5.7
		5.3	%		41.5	%		55.9	%

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 5.9%, 5.0% and 4.6% of consolidated net service and repair fees for the years ended June 30, 2019, 2018 and 2017, 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,
	2019			2018			2017
Puerto Rico		1.6	%		1.5	%		1.2	%
Switzerland		0.3			0.2			0.2
Germany		1.4			1.3			1.4
England		0.6			0.6			0.5
United Arab Emirates		0.3			0.3			—
Canada		0.4			—			0.1
Greece		0.3			0.2			0.2
Australia		1.0			0.9			1.0
		5.9	%		5.0	%		4.6	%

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