NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Estimated Useful Life in Years for Property and Equipment

The estimated useful lives in years are generally as follows:

Diagnostic equipment	5–13
Research, development and demonstration equipment	3-7
Machinery and equipment	2-7
Furniture and fixtures	3-9
Leasehold improvements	2–10
Building	28

Patient Fee Revenue - Net

The Company’s patient fee revenues, net of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2020 and 2019 are summarized in the following table.

	For the Years Ended June 30
	2020		2019
Commercial Insurance/ Managed Care	$	4,545,987	$	5,218,656
Medicare/Medicaid		1,038,288		1,172,543
Workers' Compensation/Personal Injury		16,028,737		16,790,025
Other		882,248		1,026,312
Net Patient Fee Revenue	$	22,495,260	$	24,207,536

Earnings Per Share

For the years ended June 30, 2020 and 2019, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common.

	June 30, 2020
Basic	Total		Common Stock		Class C Common Stock
Numerator:
Net income available to common stockholders	$	8,240,205	$	7,735,650	$	128,500
Denominator:
Weighted average shares outstanding		6,443,713		6,443,713		382,513
Basic income per common share	$	1.28	$	1.20	$	0.34
Diluted
Denominator:
Weighted average shares outstanding				6,443,713		382,513
Class C Common Stock				127,504		—
Total Denominator for diluted earnings per share				6,571,217		382,513
Diluted income per common share			$	1.18	$	0.34

	June 30, 2019
Basic	Total		Common Stock		Class C Common Stock
Numerator:
Net income available to common stockholders	$	15,371,131	$	14,366,798	$	242,031
Denominator:
Weighted average shares outstanding		6,354,103		6,354,103		382,513
Basic income per common share	$	2.41	$	2.26	$	0.63
Diluted
Denominator:
Weighted average shares outstanding				6,354,103		382,513
Class C Common Stock				127,504		—
Total Denominator for diluted earnings per share				6,481,607		382,513
Diluted income per common share			$	2.22	$	0.63

Lease, Liability, Maturity

A reconciliation of operating and financing lease payments undiscounted cash flows to lease liabilities recognized as of June 30, 2020 is as follows:

Year Ending June 30,		Operating Lease Payments				Financing Lease Payments
	2021		$	5,078,892			$	122,172
	2022			4,826,934				244,343
	2023			4,787,845				244,343
	2024			4,501,027				244,343
	2025			4,445,344				244,343
	Thereafter			19,607,295				407,240
	Present value discount			(9,772,724	)			(180,914	)
	Total lease liability		$	33,474,613			$	1,325,870

Weighted Average Remaining Lease Term
Operating leases - years	10.4
Finance lease - years	6.6
Weighted Average Discount Rate
Operating leases	5.5	%
Finance lease	3.6	%

Components of lease expense

 The components of lease expense were as follows:

	For year ended June 30, 2020
Operating lease cost	$	5,135,604
Finance lease cost:
Depreciation of leased equipment	$	—
Interest on lease liabilities		—
Total finance lease cost	$	—

Supplemental cash flow information related to leases

Supplemental cash flow information related to leases was as follows:

	For year ended June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,170,977
Financing cash flows from financing leases		—
Right-of-use & equipment assets obtained in exchange for lease obligations:
Operating leases(1)		34,786,611
Financing leases		1,325,871