| NEWS |
 |
Fonar
Corporation |
| For
Immediate Release |
|
The
Inventor of MR Scanning™ |
| Contact:
Daniel Culver |
|
An
ISO 9001 Company |
| Director
of Communications |
|
Melville,
New York 11747 |
| E-mail:
investor@fonar.com |
|
Phone:
(631) 694-2929 |
| www.fonar.com |
|
Fax:
(631) 390-1772 |
FONAR
ANNOUNCES SIX MONTHS AND 2ND QUARTER FINANCIAL RESULTS FOR FISCAL 2024
Total
MRI scan volume at the HMCA-managed sites increased 13% to 101,990 scans for the six months ending December 31, 2023 versus the corresponding
period one year earlier.
Cash
and cash equivalents and short-term investments increased 4% to $53.2 million at December 31, 2023, versus the fiscal year ended June
30, 2023.
Total
Revenues-Net for the six month period ended December 31, 2023 increased by 8% to $51.2 million, and for the quarter ended December 31,
2023 increased by 5% to $25.4 million, versus corresponding periods one year earlier.
Income
from Operations for the six month period ended December 31, 2023 increased 41% to $11.4 million, and for the quarter ended December 31,
2023 increased 15% to $4.9 million, versus the corresponding periods one year earlier.
Net
Income for the six months ended December 31, 2023 increased 83% to $10.0 million, and for the quarter ended December 31, 2023 increased
64% to $4.6 million, versus corresponding periods one year earlier.
Diluted
Net Income per Common Share for the six month period ended December 31, 2023 increased 87% to $1.12 and for the quarter ended December
31, 2023 increased 69% to $0.54, versus the corresponding periods one year earlier.
Net
Book Value Per Common Share increased to $24.70 per share at December 31, 2023.
MELVILLE,
NEW YORK, February 14, 2024 - FONAR Corporation (NASDAQ-FONR), The Inventor of
MR Scanning™, reported today its financial results for the six month period and 2nd quarter of fiscal 2024 which ended December
31, 2023. FONAR’s primary source of income is attributable to its wholly-owned diagnostic imaging management subsidiary, Health
Management Company of America (HMCA). In 2009, HMCA managed 9 MRI scanners. Currently, HMCA manages 42 MRI scanners in New York (25)
and in Florida (17).
Financial
Results
Income
Statement Items
Total
Revenues-Net for the quarter ended December 31, 2023 increased 5% to $25.4 million, as compared to $24.3 million for the corresponding
quarter ended December 31, 2022. Total Revenues-Net for the six months ended December 31, 2023 increased 8% to $51.2 million, as compared
to $47.4 million for the corresponding six month period ended December 31, 2022.
Income
from Operations for the quarter ended December 31, 2023 increased 15% to $4.9 million as compared to $4.2 million for the corresponding
quarter ended December 31, 2022. Income from Operations for the six months ended December 31, 2023 increased 41% to $11.4 million as
compared to $8.1 million for the corresponding six month period ended December 31, 2022.
Net
Income for the quarter ended December 31, 2023 increased 64% to $4.6 million as compared to $2.8 million for the corresponding quarter
ended December 31, 2022. Net Income for the six months ended December 31, 2023 increased 83% to $10.0 million as compared to $5.5 million
for the corresponding six month period ended December 31, 2022.
Diluted
Net Income per Common Share Available to Common Stockholders for the quarter ended December 31, 2023 increased 69% to $0.54 as compared
to $0.32 for the corresponding quarter ended December 31, 2022.
Diluted
Net Income per Common Share Available to Common Stockholders for the six months ended December 31, 2023 increased 87% to $1.12 as compared
to $0.60 for the corresponding six month period ended December 31, 2022.
Selling,
general & administrative expenses (SG&A) for the quarter ended December 31, 2023 decreased 15% to $5.6 million, as compared to
$6.6 million for the corresponding quarter ended December 31, 2022. SG&A for the six months ended December 31, 2023 decreased 19%
to $10.5 million as compared to $12.9 million for the corresponding six months ended December 31, 2022.
Cash
Flow Statement Item
Operating
Cash Flow for the six-month period ended December 31, 2023 increased 14% to $6.7 million, compared to $5.9 million for the six-month
period ended December 31, 2022.
Balance
Sheet Items
Cash
and cash equivalents and short term investments were $53.3 million at December 31, 2023 as compared to $51.3 million at June 30, 2023.
Total
Current Assets at December 31, 2023 were $132.5 million as compared to $125.7 million at June 30, 2023.
Total
Assets were $202.3 million at December 31, 2023 as compared to $200.6 million at June 30, 2023.
Total
Current Liabilities were $14.2 million at December 31, 2023 as compared to $15.6 million at June 30, 2023.
Total
Liabilities at December 31, 2023 were $46.0 million, as compared to $49.8 million at June 30, 2023.
Total
Stockholders’ Equity at December 31, 2023 was $156.3 million, as compared to $150.8 million at June 30, 2023.
Financial
Ratios
The
ratio of Total Assets / Total Liabilities at December 31, 2023 was 4.4 as compared to 4.0 at June 30, 2023.
Working
Capital increased 8% to $118.4 million at December 31, 2023 as compared to $110.0 million at June 30, 2023.
Net
Book Value Per Common Share increased to $24.70 per share at December 31, 2023’
Management
Discussion
Timothy
Damadian, president and CEO of FONAR, said, “I’m pleased to report that the total scan volume at HMCA-managed MRI centers
in the second quarter of Fiscal 2024 was a record 51,246, which was 12.8% higher than the scan volume in the corresponding quarter of
Fiscal 2023 (45,412). Further, the scan volume in the first six months of Fiscal 2024 was a record 101,990, which was 13.5% higher than
the scan volume in the corresponding six months of Fiscal 2023 (89,888).”
“A
primary reason for the growth was the opening of the new center in Casselberry, Florida last March. In addition, an HMCA-managed Stand-Up
MRI will soon open in the Bronx. There already is a long-standing and very busy Stand-Up MRI center on the east side of the Bronx and
the next will be in the south. Between these two Bronx centers, access to the very popular Stand-Up® MRI technology will be substantially
broadened for the entire borough.”
“Another
reason for the growth in scan volume has been the return to regular business hours at all of the HMCA-managed facilities. Prolonged periods
of reduced business hours were the result of COVID-related staffing shortages, particularly among MRI technologists. Competing for competent
employees from an industry-wide, shrinking labor pool has not been easy. Thankfully, we have largely solved the problem through an intense
and innovative recruiting campaign.”
“I
would also like to report that pursuant to our September 13, 2022 announcement of a FONAR stock repurchase plan of up to $9 million,
the Company has, as of December 31, 2023, repurchased 218,656 shares at a cost of $3,644,101. FONAR is limited by the manner, timing,
price, and volume restrictions of its share repurchases as prescribed in the safe harbor provisions of Rule 10b-18.”
Mr.
Damadian concluded, “I’m pleased with our current rate of growth. In the past, we have added MRI scanners to facilities when
the demand for MRIs was approaching their scanning capacities, or where the introduction of high-field MRI technology significantly expanded
the referring physician base. It’s been a very successful strategy, and so we will continue to pursue it. As always, we also seek
to establish new locations or to acquire existing centers that will enhance our existing networks and increase their profitability. Currently,
we manage 42 MRI scanners, 25 in New York and 17 in Florida. Fiscal 2024 looks very promising, and so I remain grateful for our management
team and all of our employees.”
Significant
Event
Opening
of the Raymond V. Damadian, M.D. Memorial Museum
On
December 20, 2023, FONAR opened the Raymond V. Damadian, M.D. Memorial Museum at its corporate headquarters in Melville, New York. Adjacent
to the front lobby, the museum includes a recreation of the making of the world’s first MRI image on the world’s first MRI
scanner, Indomitable, at the Downstate Medical Center in Brooklyn, New York on July 2 and 3, 1977.
The
display includes an exact replica of Indomitable along with life-size figures of the three inventors: Dr. Raymond V. Damadian and his
two postgraduate students, Lawrence Minkoff and Michael Goldsmith.
The
walls of the museum are lined with panels of captioned pictures, documents, and publications covering Dr. Damadian’s personal and
family history; his discovery that made and continues to make MRI possible; the building of Indomitable; the making of the first MRI
image; the formation and history of FONAR; and Dr. Damadian’s achievements, honors, awards, victories, disappointments and his
expression of gratitude to God.
The
museum also includes an interactive display, some of Dr. Damadian’s personal items, and many historical artifacts. The opening
was attended by corporate employees and family members, and is now open to the public by appointment. To make an appointment, contact
Daniel Culver, Director of Communications, at RVDmuseum@fonar.com.
FONAR
Legacy
The
World’s First Clinical Trials for MRI Were Conducted on a FONAR Scanner
FONAR
Corporation, founded in July, 1978, was the world’s first MRI company. It introduced the world’s first commercial MRI in
1980, the FONAR QED 80, the first of which was installed at the radiology practice of Ross, Lie, Thompson & Associates, in Mayfield
Heights, Ohio later in the same year. Dr. Damadian and Dr. Ronald J. Ross, M.D., the senior member of the practice, were members of the
Class of 1960 at the Albert Einstein College of Medicine in Bronx, New York.
It
was there at Dr. Ross’ practice where the first clinical trials on an MRI scanner were conducted. The event was covered in the
June 1981 issue of Radiology/Nuclear Medicine Magazine (1). The headline on the front cover, “NMR Clinical Trials Begin,”
was accompanied by an image of the thorax produced by the QED 80, a corresponding CT image, and the diagnosis based on the two studies.
[Note: The descriptor “MRI” has since replaced “NMR,” an abbreviation for Nuclear Magnetic Resonance.]
In
November 1981, Dr. Ross and colleagues presented their findings at the annual meeting of the Radiological Society of North America (RSNA),
the world’s largest medical meeting in the field of radiology (2). Their results were subsequently published in the peer-reviewed
journal, Radiology (3), in April 1982.
Bibliography:
| (1) | https://www.fonar.com/pdf/Radiology-nuclear-medicine-magazine.pdf |
| (2) | Presented
at the Sixty-Seventh Scientific Assembly and Annual Meeting of the Radiological Society of
North America (RSNA), Chicago, Il, Nov. 15-20, 1981. |
(3)
R. J. Ross, M.D., J. Thompson, M.D., K. Kim, M.D., and R. A. Bailey, M.D., Radiology 143: 195-205, April 1982, “Nuclear Magnetic
Resonance Imaging and Evaluation of Human Breast Tissue: Preliminary Clinical Trials.” https://pubs.rsna.org/doi/10.1148/radiology.143.1.7063727
About
FONAR
FONAR,
The Inventor of MR Scanning™, located in Melville, NY, was incorporated in 1978, and
is the first, oldest and most experienced MRI Company in the industry. FONAR went public in 1981 (Nasdaq:FONR). FONAR sold the world’s
first commercial MRI to Ronald J Ross, MD, Cleveland, Ohio. It was installed in 1980. Dr. Ross and his team began the world’s first
clinical MRI trials in January 1981. The results were reported in the June 1981 edition of Radiology/Nuclear Medicine Magazine and the
April 1982 peer-reviewed article in the Journal Radiology. The technique used for obtaining T1 and T2 values was the FONAR technique
(Field fOcusing Nuclear mAgnetic Resonance), not the back projection technique. www.fonar.com/innovations-timeline.html.
FONAR’s
signature product is the FONAR UPRIGHT® Multi-Position™ MRI (also known as the STAND-UP® MRI), the only whole-body MRI
that performs Position™ Imaging (pMRI™) and scans patients in numerous weight-bearing positions, i.e. standing, sitting,
in flexion and extension, as well as the conventional lie-down position. The FONAR UPRIGHT® MRI often detects patient problems that
other MRI scanners cannot because they are lie-down, “weightless-only” scanners. The patient-friendly UPRIGHT® MRI has
a near-zero patient claustrophobic rejection rate. As a FONAR customer states, “If the patient is claustrophobic in this scanner,
they’ll be claustrophobic in my parking lot.” Approximately 85% of patients are scanned sitting while watching TV.
FONAR
has new works-in-progress technology for visualizing and quantifying the cerebral hydraulics of the central nervous system, the flow
of cerebrospinal fluid (CSF), which circulates throughout the brain and vertebral column at the rate of 32 quarts per day. This imaging
and quantifying of the dynamics of this vital life-sustaining physiology of the body’s neurologic system has been made possible
first by FONAR’s introduction of the MRI and now by this latest works-in-progress method for quantifying CSF in all the normal
positions of the body, particularly in its upright flow against gravity. Patients with whiplash or other neck injuries are among those
who will benefit from this new understanding.
FONAR’s
primary source of income and growth is attributable to its wholly-owned diagnostic imaging management subsidiary, Health Management Company
of America (HMCA) www.hmca.com.
FONAR’s
substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging of all the gravity sensitive
regions of the human anatomy, especially the brain, extremities and spine. It includes its newest technology for measuring the Upright
cerebral hydraulics of the cerebrospinal fluid (CSF) of the central nervous system. FONAR’s UPRIGHT® Multi-Position™
MRI is the only scanner licensed under these patents.
UPRIGHT®,
and STAND-UP® are registered trademarks. The Inventor of MR Scanning™, CSP™, MultiPosition™, UPRIGHT RADIOLOGY™,
pMRI™, CFS Videography™, Dynamic™ and The Proof is in the Picture™, are trademarks of Fonar Corporation.
This
release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that
could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.
FONAR
CORPORATION AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts
and shares in thousands, except per share amounts)
(UNAUDITED)
ASSETS
| | |
December
31,
2023 | |
June
30,
2023 |
| Current
Assets: | |
| | | |
| | |
| Cash
and cash equivalents | |
$ | 53,225 | | |
$ | 51,280 | |
| Short-term
investments | |
| 33 | | |
| 33 | |
| Accounts
receivable – net | |
| 3,881 | | |
| 3,861 | |
| Accounts
receivable - related party | |
| 60 | | |
| — | |
| Medical
receivable – net | |
| 22,548 | | |
| 21,259 | |
| Management
and other fees receivable – net | |
| 39,352 | | |
| 35,888 | |
| Management
and other fees receivable – related medical practices – net | |
| 9,267 | | |
| 9,162 | |
| Inventories | |
| 2,835 | | |
| 2,570 | |
| Prepaid
expenses and other current assets | |
| 1,341 | | |
| 1,608 | |
Total
Current Assets | |
| 132,542 | | |
| 125,661 | |
| | |
| | | |
| | |
| Accounts
receivable – long term | |
| 376 | | |
| 710 | |
| Note
receivable – related party | |
| 577 | | |
| — | |
| Deferred
income tax asset | |
| 7,758 | | |
| 10,042 | |
| Property
and equipment – net | |
| 20,109 | | |
| 22,146 | |
| Right-of-use
Asset – operating lease | |
| 32,234 | | |
| 33,069 | |
| Right-of-use
Asset – financing lease | |
| 630 | | |
| 729 | |
| Goodwill | |
| 4,269 | | |
| 4,269 | |
| Other
intangible assets – net | |
| 3,266 | | |
| 3,432 | |
| Other
assets | |
| 501 | | |
| 524 | |
| Total
Assets | |
$ | 202,262 | | |
$ | 200,582 | |
FONAR
CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts
and shares in thousands, except per share amounts)
(UNAUDITED)
LIABILITIES
AND STOCKHOLDERS’ EQUITY
| |
|
December
31,
2023 |
|
June
30,
2023 |
| Current Liabilities: |
|
|
|
|
|
|
|
|
| Current
portion of long-term debt |
|
$ |
45 |
|
|
$ |
44 |
|
| Accounts
payable |
|
|
1,335 |
|
|
|
1,579 |
|
| Other
current liabilities |
|
|
3,460 |
|
|
|
5,444 |
|
| Unearned
revenue on service contracts |
|
|
3,804 |
|
|
|
3,832 |
|
| Unearned
revenue on service contracts – related party |
|
|
55 |
|
|
|
— |
|
| Operating
lease liability - current portion |
|
|
4,658 |
|
|
|
3,905 |
|
| Financing
lease liability - current portion |
|
|
222 |
|
|
|
218 |
|
| Customer
deposits |
|
|
600 |
|
|
|
602 |
|
| |
|
|
|
|
|
|
|
|
| Total
Current Liabilities |
|
|
14,179 |
|
|
|
15,624 |
|
| |
|
|
|
|
|
|
|
|
| Long-Term
Liabilities: |
|
|
|
|
|
|
|
|
| Unearned
revenue on service contracts |
|
|
376 |
|
|
|
760 |
|
| Deferred
income tax liability |
|
|
395 |
|
|
|
395 |
|
| Due
to related medical practices |
|
|
93 |
|
|
|
93 |
|
| Operating
lease liability – net of current portion |
|
|
30,299 |
|
|
|
32,105 |
|
| Financing
lease liability – net of current portion |
|
|
508 |
|
|
|
620 |
|
| Long-term
debt, less current portion |
|
|
92 |
|
|
|
115 |
|
| Other
liabilities |
|
|
23 |
|
|
|
42 |
|
| |
|
|
|
|
|
|
|
|
| Total Long-Term
Liabilities |
|
|
31,786 |
|
|
|
34,130 |
|
| Total
Liabilities |
|
|
45,965 |
|
|
|
49,754 |
|
FONAR
CORPORATION AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts
and shares in thousands, except per share amounts)
(UNAUDITED)
LIABILITIES
AND STOCKHOLDERS’ EQUITY (Continued)
| STOCKHOLDERS’
EQUITY: | |
December
31, 2023 | |
June
30,
2023 |
| Class
A non-voting preferred stock $.0001 par value; 453 shares authorized at December 31, 2023 and June 30, 2023, 313 issued and outstanding
at December 31, 2023 and June 30, 2023 | |
$ | — | | |
$ | — | |
| Preferred
stock $.001 par value; 567 shares authorized at December 31, 2023 and June 30, 2023, issued and outstanding – none | |
| — | | |
| — | |
| Common
Stock $.0001 par value; 8,500 shares authorized at December 31, 2023 and June 30, 2023, 6,332 and 6,462 issued at December 31, 2023
and June 30, 2023, respectively 6,328 and 6,451 outstanding at December 31, 2023 and June 30, 2023 respectively | |
| 1 | | |
| 1 | |
| Class
B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at December 31, 2023 and June 30, 2023; .146 issued and
outstanding at December 31, 2023 and June 30, 2023 | |
| — | | |
| — | |
| Class
C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at December 31, 2023 and June 30, 2023, 383 issued and
outstanding at December 31, 2023 and June 30, 2023 | |
| — | | |
| — | |
| Paid-in
capital in excess of par value | |
| 180,607 | | |
| 182,613 | |
| Accumulated
deficit | |
| (16,326 | ) | |
| (24,191 | ) |
| Treasury
stock, at cost - 4 shares of common stock at December 31, 2023 and 11 shares of common stock at June 30, 2023 | |
| (395 | ) | |
| (516 | ) |
| Total
Fonar Corporation’s Stockholders’ Equity | |
| 163,887 | | |
| 157,907 | |
| Non
controlling interests | |
| (7,590 | ) | |
| (7,079 | ) |
| Total
Stockholders’ Equity | |
| 156,297 | | |
| 150,828 | |
| Total
Liabilities and Stockholders’ Equity | |
$ | 202,262 | | |
$ | 200,582 | |
FONAR
CORPORATION AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Amounts
and shares in thousands, except per share amounts)
(UNAUDITED)
| | |
FOR
THE THREE MONTHS ENDED DECEMBER 31, |
| REVENUES | |
2023 | |
2022 |
| Patient
fee revenue – net of contractual allowances and discounts | |
$ | 8,221 | | |
$ | 7,129 | |
| Product
sales – net | |
| 55 | | |
| 170 | |
| Service
and repair fees – net | |
| 1,778 | | |
| 1,838 | |
| Service
and repair fees - related parties – net | |
| 28 | | |
| 28 | |
| Management
and other fees – net | |
| 12,316 | | |
| 12,092 | |
| Management
and other fees - related medical practices – net | |
| 2,988 | | |
| 2,999 | |
| Total
Revenues – Net | |
| 25,386 | | |
| 24,256 | |
| COSTS
AND EXPENSES | |
| | | |
| | |
| Costs
related to patient fee revenue | |
| 4,602 | | |
| 4,023 | |
| Costs
related to product sales | |
| 302 | | |
| 214 | |
| Costs
related to service and repair fees | |
| 784 | | |
| 722 | |
| Costs
related to service and repair fees - related parties | |
| 12 | | |
| 11 | |
| Costs
related to management and other fees | |
| 7,208 | | |
| 6,622 | |
| Costs
related to management and other fees – related medical practices | |
| 1,590 | | |
| 1,492 | |
| Research
and development | |
| 416 | | |
| 342 | |
| Selling,
general and administrative | |
| 5,587 | | |
| 6,598 | |
| Total
Costs and Expenses | |
| 20,501 | | |
| 20,024 | |
| Income
From Operations | |
| 4,885 | | |
| 4,232 | |
| Other
Expense | |
| — | | |
| (208 | ) |
| Other
Income – Related party | |
| 577 | | |
| — | |
| Interest
Expense | |
| (10 | ) | |
| (12 | ) |
| Investment
Income | |
| 534 | | |
| 263 | |
| Income
Before Provision for Income Taxes and Non controlling Interests | |
| 5,986 | | |
| 4,275 | |
| Provision
for Income Taxes | |
| (1,366 | ) | |
| (1,463 | ) |
| Net
Income | |
| 4,620 | | |
| 2,812 | |
| Net
Income – Non controlling Interests | |
| (861 | ) | |
| (580 | ) |
| Net
Income – Attributable to FONAR | |
$ | 3,759 | | |
$ | 2,232 | |
| Net
Income Available to Common Stockholders | |
$ | 3,525 | | |
$ | 2,097 | |
| Net
Income Available to Class A Non-Voting Preferred Stockholders | |
$ | 175 | | |
$ | 101 | |
| Net
Income Available to Class C Common Stockholders | |
$ | 59 | | |
$ | 34 | |
| Basic
Net Income Per Common Share Available to Common Stockholders | |
$ | 0.55 | | |
$ | 0.32 | |
| Diluted
Net Income Per Common Share Available to Common Stockholders | |
$ | 0.54 | | |
$ | 0.32 | |
| Basic
and Diluted Income Per Share – Class C Common | |
$ | 0.16 | | |
$ | 0.09 | |
| Weighted
Average Basic Shares Outstanding – Common Stockholders | |
| 6,437 | | |
| 6,527 | |
| Weighted
Average Diluted Shares Outstanding - Common Stockholders | |
| 6,565 | | |
| 6,655 | |
| Weighted
Average Basic and Diluted Shares Outstanding – Class C Common | |
| 383 | | |
| 383 | |
FONAR
CORPORATION AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Amounts
and shares in thousands, except per share amounts)
(UNAUDITED)
| | |
FOR
THE SIX MONTHS ENDED DECEMBER 31, |
| REVENUES | |
2023 | |
2022 |
| Patient
fee revenue – net of contractual allowances and discounts | |
$ | 16,896 | | |
$ | 13,205 | |
| Product
sales – net | |
| 219 | | |
| 200 | |
| Service
and repair fees – net | |
| 3,643 | | |
| 3,658 | |
| Service
and repair fees - related parties – net | |
| 55 | | |
| 55 | |
| Management
and other fees – net | |
| 24,436 | | |
| 24,342 | |
| Management
and other fees - related medical practices – net | |
| 5,975 | | |
| 5,987 | |
| Total
Revenues – Net | |
| 51,224 | | |
| 47,447 | |
| COSTS
AND EXPENSES | |
| | | |
| | |
| Costs
related to patient fee revenue | |
| 9,029 | | |
| 7,822 | |
| Costs
related to product sales | |
| 405 | | |
| 383 | |
| Costs
related to service and repair fees | |
| 1,633 | | |
| 1,440 | |
| Costs
related to service and repair fees - related parties | |
| 25 | | |
| 22 | |
| Costs
related to management and other fees | |
| 14,231 | | |
| 13,124 | |
| Costs
related to management and other fees – related medical practices | |
| 3,109 | | |
| 2,890 | |
| Research
and development | |
| 883 | | |
| 691 | |
| Selling,
general and administrative | |
| 10,453 | | |
| 12,932 | |
| Total
Costs and Expenses | |
| 39,768 | | |
| 39,304 | |
| Income
From Operations | |
| 11,456 | | |
| 8,143 | |
| Other
Income (Expense) | |
| 1 | | |
| (197 | ) |
| Other
Income – Related party | |
| 577 | | |
| — | |
| Interest
Expense | |
| (58 | ) | |
| (27 | ) |
| Investment
Income | |
| 1,040 | | |
| 414 | |
| Income
Before Provision for Income Taxes and Non controlling Interests | |
| 13,016 | | |
| 8,333 | |
| Provision
for Income Taxes | |
| (3,036 | ) | |
| (2,871 | ) |
| Net
Income | |
| 9,980 | | |
| 5,462 | |
| Net
Income – Non controlling Interests | |
| (2,115 | ) | |
| (1,183 | ) |
| Net
Income – Attributable to FONAR | |
$ | 7,865 | | |
$ | 4,279 | |
| Net
Income Available to Common Stockholders | |
$ | 7,375 | | |
$ | 4,020 | |
| Net
Income Available to Class A Non-Voting PreferredStockholders | |
$ | 365 | | |
$ | 193 | |
| Net
Income Available to Class C Common Stockholders | |
$ | 125 | | |
$ | 66 | |
| Basic
Net Income Per Common Share Available to Common Stockholders | |
$ | 1.14 | | |
$ | 0.62 | |
| Diluted
Net Income Per Common Share Available to Common Stockholders | |
$ | 1.12 | | |
$ | 0.60 | |
| Basic
and Diluted Income Per Share – Class C Common | |
$ | 0.33 | | |
$ | 0.17 | |
| Weighted
Average Basic Shares Outstanding – Common Stockholders | |
| 6,448 | | |
| 6,534 | |
| Weighted
Average Diluted Shares Outstanding - Common Stockholders | |
| 6,576 | | |
| 6,662 | |
| Weighted
Average Basic and Diluted Shares Outstanding – Class C Common | |
| 383 | | |
| 383 | |
FONAR
CORPORATION AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts
and shares in thousands)
(UNAUDITED)
| | |
| |
|
| | |
FOR
THE SIX MONTHS
ENDED DECEMBER 31, |
| | |
2023 | |
2022 |
| Cash
Flows from Operating Activities: | |
| | | |
| | |
| Net
income | |
$ | 9,980 | | |
$ | 5,462 | |
| Adjustments
to reconcile net income to net cash provided by operating activities: | |
| | | |
| | |
| Depreciation
and amortization | |
| 2,415 | | |
| 2,218 | |
| Amortization
on right-of-use assets | |
| 2,146 | | |
| 2,238 | |
| Provision
for bad debts | |
| 355 | | |
| 2,891 | |
| Deferred
income tax – net | |
| 2,284 | | |
| 2,306 | |
| Gain
on sale of equipment – related party | |
| (577 | ) | |
| — | |
| (Increase)
decrease in operating assets, net: | |
| | | |
| | |
| Accounts,
medical and management fee receivable(s) | |
| (4,958 | ) | |
| (3,375 | ) |
| Notes
receivable | |
| 50 | | |
| 11 | |
| Inventories | |
| (265 | ) | |
| (274 | ) |
| Prepaid
expenses and other current assets | |
| 217 | | |
| 60 | |
| Other
assets | |
| 22 | | |
| — | |
| Increase
(decrease) in operating liabilities, net: | |
| | | |
| | |
| Accounts
payable | |
| (244 | ) | |
| (685 | ) |
| Other
current liabilities | |
| (2,341 | ) | |
| (3,228 | ) |
| Operating
lease liabilities | |
| (2,265 | ) | |
| (1,874 | ) |
| Financing
lease liabilities | |
| (108 | ) | |
| (126 | ) |
| Customer
deposits | |
| (3 | ) | |
| 271 | |
| Other
liabilities | |
| (19 | ) | |
| (33 | ) |
| Net
cash provided by operating activities | |
| 6,689 | | |
| 5,862 | |
| Cash
Flows from Investing Activities: | |
| | | |
| | |
| Purchases
of property and equipment | |
| (192 | ) | |
| (1,362 | ) |
| Cost
of patents | |
| (20 | ) | |
| (74 | ) |
| Net
cash used in investing activities | |
| (212 | ) | |
| (1,436 | ) |
| Cash
Flows from Financing Activities: | |
| | | |
| | |
| Repayment
of borrowings and capital lease obligations | |
| (21 | ) | |
| (15 | ) |
| Purchase
of treasury stock | |
| (1,885 | ) | |
| (478 | ) |
| Distributions
to non controlling interests | |
| (2,626 | ) | |
| (3,151 | ) |
| Net
cash used in financing activities | |
| (4,532 | ) | |
| (3,644 | ) |
| Net
Increase in Cash and Cash Equivalents | |
| 1,945 | | |
| 782 | |
| Cash
and Cash Equivalents - Beginning of Period | |
| 51,280 | | |
| 48,723 | |
| Cash
and Cash Equivalents - End of Period | |
$ | 53,225 | | |
$ | 49,505 | |