FONAR CORP Files 10-Q for Period Ended December 31, 2023

TL;DR

<b>FONAR CORP filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial performance and operational status.</b>

AI Summary

FONAR CORP (FONR) filed a Quarterly Report (10-Q) with the SEC on February 14, 2024. FONAR CORP filed a 10-Q report for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on June 30th. FONAR CORP is in the ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS industry (SIC 3845). The company's principal business address is 110 Marcus Drive, Melville, NY 11747.

Why It Matters

For investors and stakeholders tracking FONAR CORP, this filing contains several important signals. This 10-Q filing provides investors with an updated view of FONAR CORP's financial health and operational progress for the second quarter of fiscal year 2024. Understanding the details within this report is crucial for assessing the company's performance in the electromedical apparatus sector and making informed investment decisions.

Risk Assessment

Risk Level: low — FONAR CORP shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not contain significant new risks or disclosures beyond typical business operations.

Analyst Insight

Monitor future 10-Q filings for trends in revenue, net income, and any changes in risk factors to evaluate FONAR CORP's ongoing performance.

Key Numbers

• 2023-12-31 — Period End Date (Conformed period of report)
• 2024-02-14 — Filing Date (Filed as of date)
• 0630 — Fiscal Year End (Fiscal year end)
• 3845 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• FONAR CORP (company) — Filer name
• 2023-12-31 (date) — Period of report
• 2024-02-14 (date) — Filed as of date
• 3845 (industry) — Standard Industrial Classification
• 110 Marcus Dr, Melville, NY 11747 (address) — Business address
• 6316942929 (phone) — Business phone

FAQ

Industry Context

FONAR CORP operates within the electromedical and electrotherapeutic apparatus industry, which involves the design, manufacturing, and sale of medical devices.

Regulatory Implications

As a publicly traded company, FONAR CORP is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) to disclose financial and operational information.

What Investors Should Do

1. Review the full 10-Q document for detailed financial statements and management's discussion and analysis.
2. Compare the reported financial metrics for the quarter ending December 31, 2023, with previous periods to identify performance trends.
3. Note any specific disclosures or risk factors mentioned in the filing that could impact the company's future operations.

Key Dates

• 2023-12-31: Period End Date — End of the reporting period for the 10-Q filing.
• 2024-02-14: Filing Date — Date the 10-Q report was officially filed with the SEC.
• 2024-06-30: Fiscal Year End — Indicates the end of FONAR CORP's fiscal year.

Year-Over-Year Comparison

This is the initial 10-Q filing for the period ending December 31, 2023, and no prior period comparison data is available within this specific document excerpt.

Filing Documents

• fonar_10-q.htm (10-Q) — 810KB
• fonar_exhibit-31.htm (EX-31.1) — 23KB
• fonar_exhibit-32.htm (EX-32.1) — 9KB
• fonar_logo.jpg (GRAPHIC) — 14KB
• 0000355019-24-000009.txt (&nbsp;) — 4324KB
• fonr-20231231.xsd (EX-101.SCH) — 39KB
• fonr-20231231_cal.xml (EX-101.CAL) — 65KB
• fonr-20231231_def.xml (EX-101.DEF) — 140KB
• fonr-20231231_lab.xml (EX-101.LAB) — 254KB
• fonr-20231231_pre.xml (EX-101.PRE) — 202KB
• fonar_10-q_htm.xml (XML) — 694KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION PAGE

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets - December 31, 2023 (Unaudited) and June 30, 2023 3 Condensed Consolidated Statements of Income for the Three Months Ended December 31, 2023 and December 31, 2022 (Unaudited) 6 Condensed Consolidated Statements of Income for the Six Months Ended December 31, 2023 and December 31, 2022 (Unaudited) 7 Condensed Consolidated Statements of Changes in Equity for the Three Months Ended December 31, 2023 and December 31, 2022 (Unaudited) 8 Condensed Consolidated Statements of Changes in Equity for the Six Months Ended December 31, 2023 and December 31, 2022 (Unaudited) 9 Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2023 and December 31, 2022 (Unaudited) 10 Notes to Condensed Consolidated Financial Statements (Unaudited) 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

- OTHER INFORMATION

PART II - OTHER INFORMATION 31

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 I tem 3. Defaults Upon Senior Securities 33

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 33

Other Information

Item 5. Other Information 33

Exhibits

Item 6. Exhibits 33

Signatures

Signatures 34 Page 2 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 *Condensed from audited financial statements. See accompanying notes to condensed consolidated financial Page 3 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 co

financial statements

financial statements. Page 6 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 Preferred Stockholders $ 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 $

View Full Filing

View this 10-Q filing on SEC EDGAR