FONAR (FONR) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	Sep. 30, 2013	Oct. 31, 2013	Oct. 31, 2013	Oct. 31, 2013	Oct. 31, 2013
		Common Stock	Class B Common Stock	Class C Common Stock	Preferred Stock Class A
Entity Registrant Name	'Fonar Corporation	'	'	'	'
Entity Central Index Key	'0000355019	'	'	'	'
Document Type	'10-Q	'	'	'	'
Document Period End Date	31-Mar-13	'	'	'	'
Amendment Flag	'false	'	'	'	'
Current Fiscal Year End Date	'--06-30	'	'	'	'
Is Entity a Well-known Seasoned Issuer?	'No	'	'	'	'
Is Entity a Voluntary Filer?	'No	'	'	'	'
Is Entity's Reporting Status Current?	'Yes	'	'	'	'
Entity Filer Category	'Smaller Reporting Company	'	'	'	'
Entity Public Float	'	$63,657,451	'	'	'
Entity Common Stock, Shares Outstanding	'	6,010,075	146	382,513	313,438
Document Fiscal Period Focus	'Q3	'	'	'	'
Document Fiscal Year Focus	'2013	'	'	'	'

Balance_Sheets

Balance Sheets (USD $)	Sep. 30, 2013	Jun. 30, 2013
Current Assets:	'	'
Cash and cash equivalents	$9,238,000	$7,871,000
Accounts receivable - net	5,026,000	4,444,000
Accounts receivable - related party	90,000	'
Medical Receivables - net	8,552,000	8,126,000
Management and other fees receivable - net	12,075,000	11,466,000
Management and other fees receivable - related medical practices - net	2,743,000	2,382,000
Inventories	2,126,000	2,077,000
Prepaid expenses and other current assets	1,292,000	1,500,000
Total Current Assets	41,142,000	37,866,000
Deferred income tax asset	2,936,000	2,936,000
Property and equipment - net	17,067,000	17,524,000
Goodwill	1,767,000	1,767,000
Other intangible assets - net	11,608,000	11,904,000
Other assets	1,078,000	1,154,000
Total Assets	75,598,000	73,151,000
Current Liabilities:	'	'
Current portion of long-term debt and capital leases	3,154,000	2,886,000
Accounts payable	2,695,000	2,752,000
Other current liabilities	9,011,000	8,636,000
Unearned revenue on service contracts	5,516,000	4,965,000
Unearned revenue on service contracts - related parties	83,000	'
Customer advances	1,917,000	1,858,000
Income tax payable	0	20,000
Total Current Liabilities	22,376,000	21,117,000
Long-Term Liabilities:	'	'
Due to related medical practices	230,000	231,000
Long-term debt and capital leases, less current portion	11,649,000	12,887,000
Deferred income tax liability	462,000	462,000
Other liabilities	625,000	654,000
Total Long-Term Liabilities	12,966,000	14,234,000
Total Liabilities	35,342,000	35,351,000
STOCKHOLDERS' EQUITY:	'	'
Common Stock	1,000	1,000
Paid-in capital in excess of par value	174,628,000	174,499,000
Accumulated deficit	-157,218,000	-159,655,000
Notes receivable from employee stockholders	-53,000	-55,000
Treasury stock, at cost - 11,643 shares of common stock at December 31, 2012 and June 30, 2011	-675,000	-675,000
Total Fonar Corporation Stockholder Equity	16,683,000	14,115,000
Non controlling interests	23,573,000	23,685,000
Total Stockholders' Equity	40,256,000	37,800,000
Total Liabilities and Stockholders' Equity	$75,598,000	$73,151,000

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Jun. 30, 2013
Class A NonVoting Preferred Stock	'	'
Preferred Stock, Par Value	$0.00	$0.00
Preferred Stock, Authorized	453,000	453,000
Preferred Stock, Issued	313,000	313,000
Preferred Stock, Outstanding	313,000	313,000
Preferred Stock	'	'
Preferred Stock, Par Value	$0.00	$0.00
Preferred Stock, Authorized	567,000	567,000
Preferred Stock, Issued	'	'
Preferred Stock, Outstanding	'	'
Common Stock	'	'
Common Stock, Par Value	$0.00	$0.00
Common Stock, Authorized	8,500,000	8,500,000
Common Stock, Issued	5,999,000	5,981,000
Common Stock, Outstanding	5,988,000	5,969,000
Class B Common Stock	'	'
Common Stock, Par Value	$0.00	$0.00
Common Stock, Authorized	227,000	227,000
Common Stock, Issued	146,000	146,000
Common Stock, Outstanding	146,000	146,000
Class C Common Stock	'	'
Common Stock, Par Value	$0.00	$0.00
Common Stock, Authorized	567,000	567,000
Common Stock, Issued	383,000	383,000
Common Stock, Outstanding	383,000	383,000

Consolidated_Statements_of_Inc

Consolidated Statements of Income (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
REVENUES	'	'
Product sales - net	$28	$1,041
Service and repair fees - net	2,512	2,709
Service and repair fees - related parties - net	28	27
Patient Fee Revenue, net of Contractual Allowances and Discounts	5,827	'
Provision for Bad Debts for patient fee	-2,040	'
Management and other fees - net	8,143	3,769
Management and other fees - related medical practices - net	2,333	1,965
Total Revenues - Net	16,831	9,511
COSTS AND EXPENSES	'	'
Costs related to product sales	48	1,056
Costs related to service and repair fees	544	865
Costs related to service and repair fees - related parties	6	9
Costs related to patient revenue	1,848	'
Costs related to management and other fees	5,075	2,171
Costs related to management and other fees - related medical practices	1,219	817
Research and development	395	330
Selling, general and administrative	3,737	2,212
Provision for bad debts	-94	175
Total Costs and Expenses	12,778	7,635
Income From Operations	4,053	1,876
Interest Expense	-243	-76
Investment Income	61	59
Other (Expense) Income	-151	-9
Income Before Provision for Income Taxes and non-controlling interests	3,720	1,850
Provision for Income Taxes	100	72
Net Income	3,620	1,778
Net Income - Non Controlling Interests	-1,183	-326
Net Income - Controlling Interests	2,437	1,452
Net Income Available to Common Stockholders	2,277	1,355
Net Income Available to Class A Non-Voting Preferred Stockholders	119	72
Net Income Available to Class C Common Stockholders	$41	$25
Basic Net Income Per Common Share Available to Common Stockholders	$0.38	$0.23
Diluted Net Income Per Common Share Available to Common Stockholders	$0.37	$0.22
Basic and Diluted Income Per Share - Common C	$0.11	$0.06
Weighted Average Basic Shares Outstanding	5,978	5,901
Weighted Average Diluted Shares Outstanding	6,106	6,029
Weighted Average Basic Shares Outstanding - Class C Common	383	383
Weighted Average Diluted Shares Outstanding - Class C Common	383	383

Statements_of_Cash_Flows

Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash Flows from Operating Activities:	'	'
Net income	$3,620	$1,778
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	982	415
Provision for bad debts	-94	175
Compensatory element of stock issuances	19	'
Stock issued for costs and expenses	110	'
(Increase) decrease in operating assets, net:	'	'
Accounts, management fee and medical receivables	-1,974	-979
Notes receivable	35	33
Costs and estimated earnings in excess of billings on uncompleted contracts	'	-30
Inventories	-49	-322
Prepaid expenses and other current assets	210	6
Other assets	40	-24
Increase (decrease) in operating liabilities, net:	'	'
Accounts payable	-58	112
Other current liabilities	1,008	536
Customer advances	60	16
Other liabilities	-29	-10
Due to related medical practices	-1	2
Income tax payable	-20	-75
Net cash provided by operating activities	-3,859	-1,633
Cash Flows from Investing Activities:	'	'
Purchases of property and equipment	-182	-211
Cost of patents	-47	-36
Net cash used in investing activities	-229	-247
Cash Flows from Financing Activities:	'	'
Repayment of borrowings and capital lease obligations	-970	-266
Distributions to non controlling interests	-1,295	-249
Repayment of notes receivable from employee Stockholders	2	2
Net cash provided by (used in) financing activities	-2,263	-513
Net (Decrease) Increase in Cash and Cash Equivalents	1,367	873
Cash and Cash Equivalents - Beginning of Period	7,871	12,032
Cash and Cash Equivalents - End of Period	$9,238	$12,905

NOTE_1_BASIS_OF_PRESENTATION_L

NOTE 1 - BASIS OF PRESENTATION & LIQUIDITY & CAPITAL RESOURCES	3 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
NOTE 1 - BASIS OF PRESENTATION & LIQUIDITY & CAPITAL RESOURCES	'
	NOTE 1 - BASIS OF PRESENTATION & LIQUIDITY & CAPITAL RESOURCES
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended September 30, 2013, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2014. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K filed on October 15, 2013 for the fiscal year ended June 30, 2013.

NOTE_2_SUMMARY_OF_SIGNIFICANT_

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Principles of Consolidation
	The unaudited condensed consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships (collectively the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation.
	Earnings Per Share
	Basic earnings per share (“EPS”) is computed based upon the weighted average number of shares of common stock and stock equivalents outstanding, net of common stock. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class method”, the Company used the Two-Class method for calculating basic income per share and applied the if converted method in calculating diluted income per share for the three months ended September 30, 2013 and 2012.
	Diluted EPS reflects the potential dilution from the exercise or conversion of all dilutive securities into common stock based on the average market price of common shares outstanding during the period. For the three months ended September 30, 2013 and 2012, diluted EPS for common shareholders includes 128 shares upon conversion of Class C Common.
		Three months ended						Three months ended
		30-Sep-13						30-Sep-12
		Total		Common Stock		Class C Common Stock		Total		Common Stock		Class C Common Stock
	Basic
	Numerator:	$	2,437	$	2,277	$	41	$	1,452	$	1,355	$	25
	Net income available to common stockholders
	Denominator:		5,978		5,978		383		5,901		5,901		383
	Weighted average shares outstanding
	Basic income per common share	$	0.41	$	0.38	$	0.11	$	0.25	$	0.23	$	0.06
	Diluted
	Denominator:				5,978		383				5,901		383
	Weighted average shares outstanding
	Stock options				—		—				—		—
	Convertible Class C Stock				128		—				128		—
	Total Denominator for diluted earnings per share				6,106		383				6,029		383
	Diluted income per common share			$	0.37	$	0.11			$	0.22	$	0.06
	Recent Accounting Pronouncements
	In July 2012, the FASB issued ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350) Testing Indefinite-Lived Intangible Assets for Impairment. This ASU simplifies how entities test indefinite-lived intangible assets for impairment which improve consistency in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s condensed consolidated financial position and results of operations.
	The FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial position and results of operations.
	FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of September 30, 2013 that will become effective in subsequent periods; however, management does not believe that any of those updates would have significantly affected our financial accounting measures or disclosures had they been in effect during 2013 or 2012, and it does not believe that any of those pronouncements will have a significant impact on our consolidated financial statements at the time they become effective.
	Reclassifications
	Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifcations did not have any effect on reported consolidated net income for any periods presented.

NOTE_3_ACCOUNTS_RECEIVABLE_MED

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLES AND MANAGEMENT AND OTHER FEES RECEIVABLE (USD $)	3 Months Ended
	Sep. 30, 2013
Receivables [Abstract]	'
NOTE 3 - ACCOUNTS RECEIVABLE. MEDICAL RECEIVABLES AND MANAGEMENT AND OTHER FEES RECEIVABLE (USD $)	'
	NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE
	Accounts Receivable, Medical Receivable and Management and Other Fees Receivable
	Receivables, net is comprised of the following at September 30, 2013:
		Gross		Allowance for		Net
		Receivable		doubtful accounts
	Receivables from equipment sales and service contracts	$	5,283	$	257	$	5,026
	Receivables from equipment sales and service contracts - related party	$	90		—	$	90
	Medical Receivable	$	13,176	$	4,624	$	8,552
	Management and other fees receivables	$	21,076	$	9,001	$	12,075
	Management and other fees receivables from related medical practices ("PC’s")	$	3,146	$	403	$	2,743
	The Company's customers are concentrated in the healthcare industry.
	Accounts Receivable
	Credit risk with respect to the Company’s accounts receivable related to product sales and service and repair fees is limited due to the customer advances received prior to the commencement of work performed and the billing of amounts to customers as sub-assemblies are completed. Service and repair fees are billed on a monthly or quarterly basis and the Company does not continue providing these services if accounts receivable become past due. The Company controls credit risk with respect to accounts receivable from service and repair fees through its credit evaluation process, credit limits, monitoring procedures and reasonably short collection terms. The Company performs ongoing credit authorizations before a product sales contract is entered into or service and repair fees are provided.
	Medical Receivable
	Medical receivables are due under fee-for-service contracts from third party payors, such as hospitals, government sponsored healthcare programs, patient’s legal counsel and directly from patients. Substantially all the revenue relates to patients residing in Florida. The carrying amount of the medical receivable is reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected. The Company continuously monitors collections from its clients and maintains an allowance for bad debts based upon the Company’s historical collection experience. The Company determines allowances for contractual adjustments and uncollectible accounts based on specific agings, specific payor collection issues that have been identified and based on payor classifications and historical experience at each site.
	Management and Other Fees Receivable
	The Company's receivables from the related and non-related professional corporations (PC's) substantially consist of fees outstanding under management agreements. Payment of the outstanding fees is dependent on collection by the PC's of fees from third party medical reimbursement organizations, principally insurance companies and health management organizations.
	Payment of the management fee receivables from the PC’s may be impaired by the inability of the PC’s to collect in a timely manner their medical fees from the third party payors, particularly insurance carriers covering automobile no-fault and workers compensation claims due to longer payment cycles and rigorous informational requirements and certain other disallowed claims. Approximately 51% and 38% of the PCs’ net revenues for the three months ended September 30, 2013 and 2012, respectively, were derived from no-fault and personal injury protection claims. The Company considers the aging of its accounts receivable in determining the amount of allowance for doubtful accounts. The Company generally takes all legally available steps to collect its receivables. Credit losses associated with the receivables are provided for in the condensed consolidated financial statements and have historically been within management's expectations.
	Net revenues from management and other fees charged to the related PCs accounted for approximately 13.9% and 20.7% of the consolidated net revenues for the three months ended September 30, 2013 and 2012, respectively.
	Tallahassee Magnetic Resonance Imaging, PA, Stand Up MRI of Boca Raton, PA and Stand Up MRI & Diagnostic Center, PA (all related medical practices) entered into a guaranty agreement, pursuant to which they cross guaranteed all management fees which are payable to the Company, which have arisen under each individual management agreement.
	The Company’s patient fee revenue, net of contractual allowances and discounts less the provision for bad debts for the three months ended September 30, 2013 and 2012 are summarized in the following table.
		For the Three Months Ended
		September 30,
		2013		2012
	Commercial Insurance/ Managed Care	$	1,100	$	—
	Medicare/Medicaid		379		—
	Workers' Compensation/Personal Injury		2,895		—
	Other		1,453		—
	Patient Fee Revenue, net of contractual allowances and discounts		5,827		—
	Provision for Bad Debts		-2,040		—
	Net Patient Fee for Revenue	$	3,787	$	—

NOTE_4_INVENTORIES

NOTE 4 - INVENTORIES	3 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
NOTE 4 - INVENTORIES	'
	NOTE 4 - INVENTORIES
	Inventories included in the accompanying condensed consolidated balance sheet consist of the following:
		September 30,		June 30,
		2013		2013
	Purchased parts, components and supplies	$	1,811	$	1,784
	Work-in-process		315		293
	TOTAL INVENTORIES	$	2,126	$	2,077

NOTE_5_CUSTOMER_ADVANCES

NOTE 5 - CUSTOMER ADVANCES	3 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 5 - CUSTOMER ADVANCES	'
	NOTE 5 - CUSTOMER ADVANCES
	Customer advances consist of the following as of September 30, 2013:
	Total advances	$	4,287
	Less: Advances on contracts under construction		2,370
	Total customer advances	$	1,917

NOTE_6_OTHER_INTANGIBLE_ASSETS

NOTE 6 - OTHER INTANGIBLE ASSETS	3 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
NOTE 6 - OTHER INTANGIBLE ASSETS	'
	NOTE 6 – OTHER INTANGIBLE ASSETS
	Other intangible assets, net of accumulated amortization, in the accompanying condensed consolidated balance sheet consist of the following:
		September 30,		June 30,
		2013		2013
	Capitalized software development costs	$	7,669	$	7,669
	Patents and copyrights		4,241		4,194
	Non-compete		4,100		4,100
	Customer relationships		3,800		3,800
	Gross Other intangible assets		19,810		19,763
	Less: Accumulated amortization		8,202		7,859
	Other Intangible Assets	$	11,608	$	11,904
	Amortization of patents and copyrights for the three months ended September 30, 2013 and 2012 amounted to $44 and $41, respectively.
	Amortization of capitalized software development costs for the three months ended September 30, 2013 and 2012 amounted to $109 and $85, respectively.
	Amortization of non-compete for the three months ended September 30, 2013 and 2012 amounted to $146 and $0, respectively.
	Amortization of customer relationships for the three months ended September 30, 2013 and 2012 amounted to $44 and $0, respectively.

NOTE_7_OTHER_CURRENT_LIABILITI

NOTE 7 - OTHER CURRENT LIABILITIES	3 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]	'
Note 7 - OtherLiabilitiesCurrent	'
	NOTE 7 – OTHER CURRENT LIABILITIES
	Other current liabilities in the accompanying condensed consolidated balance sheet consist of the following:
		30-Sep-13		30-Jun-13
	Accrued salaries, commissions and payroll taxes	$	922	$	711
	Accrued interest		117		117
	Litigation accruals		849		809
	Sales tax payable		2,924		2,859
	Legal and other professional fees		507		569
	Accounting fees		184		305
	Insurance premiums		72		13
	Interest and penalty - sales tax		2,376		2,322
	Penalty  - 401k plan		250		250
	Rent		124		148
	Other		686		533
	TOTAL OTHER CURRENT LIABILITIES	$	9,011	$	8,636

NOTE_8_STOCKHOLDERS_EQUITY

NOTE 8 - STOCKHOLDERS EQUITY	3 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
NOTE 8 - STOCKHOLDERS EQUITY	'
	NOTE 8 – STOCKHOLDERS EQUITY
	During the three months ended September 30, 2013:
	a)	The Company issued 3 shares of common stock to employees and consultants as compensation valued at $19 under a stock bonus plan.
	b)	The Company issued 15 shares of common stock for costs and expenses of $110.

NOTE_9_CONTROLLING_AND_NONCONT

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS	3 Months Ended
	Sep. 30, 2013
Business Combinations [Abstract]	'
NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS	'
	NOTE 9 – CONTROLLING AND NONCONTROLLING INTERESTS
	On February 13, 2013 the Company entered into an agreement with outside investors to acquire a 50.5% controlling interest in a newly formed limited liability company, Health Diagnostics Management LLC (HDM). According to the February 13, 2013 LLC operating agreement of HDM there are two classes of members; Class A members and one Class B member. The Class A members have an ownership interest of 49.5% of HDM. The Class B member (HMCA) has an ownership of 50.5% of HDM. On all matters on which members may vote every member is entitled to cast the percentage of votes equal to their percentage of ownership interest. Profits and losses an all items of income, gain or loss, deductions or other allocations of the Company will be allocated among the members in the same proportions as their membership interests in the Company bear to all the Class A and Class B membership interests of the Company in the aggregate outstanding. All of the depreciation and amortization of the assets of the Company will be allocated solely to the Class A members, unless and until their interests have been redeemed by the Company in full pursuant to the provisions of the operating agreement. During March 2013 the Company contributed $20,200 to HDM and the group of outside investors contributed $19,800 for its non-controlling membership interest.
	To fund its capital contribution the Company borrowed a total of $14,000 from a bank in the form of a term loan aggregating $11,000 and a revolving credit loan aggregating $3,000. The term loan is payable in 60 consecutive monthly installments, commencing September 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The revolving credit loan is due March 5, 2016. The Company can prepay the loan in whole or in part in multiples of $100 at any time without penalty. The revolving credit note bears interest at a rate of 4% per annum and is payable monthly. All borrowings under the loan agreements are collateralized by substantially all of the Company’s assets. The loan agreements also contain certain financial covenants that must be met on a periodic basis.
	On March 5, 2013 HDM purchased from Health Diagnostics, LLC (“HD”) and certain of its subsidiaries, a business managing twelve (12) Stand-Up® MRI Centers and two (2) other scanning centers located in the States of New York and Florida for a total purchase price (including consideration of $1,500 to outside investors) aggregating $35,900. Concurrently with the acquisition, HDM entered into several consulting and non-competition agreements for a consideration of $4,100. The acquisition was accounted for using the purchase method in accordance with ASC 805, “Business Combinations”. The accompanying consolidated financial statements include the operations of HDM from the date of acquisition. The Company recognizes and measures goodwill as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired.
	The following table summarizes the estimated fair values of the assets and liabilities assumed at the acquisition date:
	Management fee receivable	$	6,667
	Medical receivables		7,390
	Prepaid expenses and other current assets		10
	Property and equipment		14,913
	Intangible assets		9,200
	Goodwill		1,767
	Other assets		333
	Other current liabilities		(6	)
	Long term debt		(274	)
	Net assets acquired	$	40,000
	The purchase price was allocated to the tangible and intangible assets and liabilities assumed based on estimates of their respective fair values at the date of acquisition with the remaining unallocated purchase price recorded as goodwill. Management is responsible for the valuation of net assets acquired and considered a number of factors, including valuations and appraisals, when estimating the fair values and estimated useful lives of acquired assets and liabilities. The intangible assets, excluding goodwill, are being amortized on a straight-line basis over their weighted average lives as follows:
		Fair Value
	Non compete	$	4,100		7 years
	Customer relationships		3,800		20 years
	Developed software		1,300		5 years
	Total intangible assets	$	9,200
	The HDM acquisition operating results have been included within the Company’s condensed consolidated financial statements since the date of acquisition. The following unaudited pro forma information assumes that the acquisition had been completed as of July 1, 2012:
		FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012
	Total Revenues - Net	$	19,194
	Net Income - Controlling Interests		4,698
	Net Income Available to Common Stockholders		4,385
	Net Income Available to Class A Non-Voting Preferred Stockholders		233
	Net Income Available to Class C Common Stockholders		80
	Basis Net Income Per Common Share Available to Common Stockholders	$	0.74
	Diluted Net Income Per Common Share Available to Common Stockholders	$	0.73
	Basic and Diluted Income Per Share - Common C	$	0.21
	Weighted Average Basic Shares Outstanding		5,901
	Weighted Average Diluted Shares Outstanding		6,029
	Weighted Average Basic and Diluted Shares Outstanding - Class C Common		383

NOTE_10_SEGMENT_AND_RELATED_IN

NOTE 10 - SEGMENT AND RELATED INFORMATION	3 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
NOTE 10 - SEGMENT AND RELATED INFORMATION	'
	NOTE 10 - SEGMENT 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 as disclosed in the Company’s 10-K as of June 30, 2013. All inter-segment 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:
		Medical		Management		Totals
		Equipment		Of Diagnostic
				Imaging
				Centers
	For the three months ended Sept. 30, 2013
	Net revenues from external customers	$	2,568	$	14,263	$	16,831
	Inter-segment net revenues	$	495	$	—	$	495
	Income from operations	$	162	$	3,891	$	4,053
	Depreciation and amortization	$	108	$	874	$	982
	Capital expenditures	$	47	$	182	$	229
	For the three months ended Sept. 30, 2012
	Net revenues from external customers	$	3,777	$	5,734	$	9,511
	Inter-segment net revenues	$	202	$	—	$	202
	Income from operations	$	227	$	1,649	$	1,876
	Depreciation and amortization	$	158	$	257	$	415
	Capital expenditures	$	71	$	176	$	247

NOTE_11_SUPPLEMENTAL_CASH_FLOW

NOTE 11 - SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Sep. 30, 2013
Supplemental Cash Flow Elements [Abstract]	'
NOTE 11 - SUPPLEMENTAL CASH FLOW INFORMATION	'
	NOTE 11 – SUPPLEMENTAL CASH FLOW INFORMATION
	During the three months ended September 30, 2013 and September 30, 2012, the Company paid $189 and $33 for interest, respectively. During the three months ended September 30, 2013 and September 30, 2012, the Company paid $120 and $147 for income taxes, respectively.

NOTE_12_COMMITMENTS_AND_CONTIN

NOTE 12 - COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
NOTE 12 - COMMITMENTS AND CONTINGENCIES	'
	NOTE 12 – COMMITMENTS AND CONTINGENCIES
	Litigation
	The Company is subject to legal proceedings and claims arising from the ordinary course of its business, including personal injury, customer contract and employment claims. In the opinion of management, the aggregate liability, if any, with respect to such actions, will not have a material adverse effect on the consolidated financial position or results of operations of the Company.
	There were no material changes in litigation from that reported in our Form 10-K for the fiscal year ended June 30, 2013.
	Bonutti Research v. Fonar Corporation, Health Management Corporation of America, Health Diagnostics, LLC et al, was commenced on December 2, 2011. Bonutti Research filed a patent infringement action in the U.S. District Court for the Eastern District Court of New York, alleging that Fonar’s Upright® MRI scanners infringe plaintiff’s patent which relates to the moving of a patient into the scanner. Fonar believes plaintiff’s claims are without merit and further, that the patent is invalid. The parties made various motion related to discovery, but now have agreed in principal to settle the case for $150, payable by Fonar in four installments and certain licenses and covenants not to sue. The final settlement agreement is being drafted and negotiated. The $150 has been accrued as of September 30, 2013 in the Company’s condensed consolidated financial statements.
	Bolt MRI Technologies v. Fonar Corporation, Health Management Corporation of America & Health Diagnostics, LLC, was commenced on July 22, 2013, when Bolt MRI Technologies filed an action against Fonar Corporation, Health Management Corporation of America and Health Diagnostics, LLC alleging infringement of the same patent which is the subject of the Bonutti case. Bolt alleged that the patent was assigned to Bolt. The settlement of the Bonutti case will cover this case as well.
	Other Matters
	The Company is also delinquent in filing sales tax returns for certain states, for which the Company has transacted business. As of September 30, 2013, the Company has recorded tax obligations of approximately $2,682 plus interest and penalties of approximately $2,376. The Company is in the process of determining the regulatory requirements in order to become compliant.
	The Company has determined they may not be in compliance with the Department of Labor and Internal Revenue Service regulations concerning the requirements to file Form 5500 to report activity of its 401(k) Employee Benefit Plan. The filings do not require the Company to pay tax, however they may be subject to penalty for non-compliance. The Company has recorded provisions for any potential penalties totaling $250. The amount was the Company’s best estimate of potential penalties. Management is unable to determine the outcome of this uncertainty. The Company has engaged outside counsel to handle such matters to determine the necessary requirements to ensure compliance. On August 31, 2011, the Company submitted with the Internal Revenue Service a request for a compliance statement and a determination letter for our 401K plan. On December 9, 2011, the Internal Revenue Service issued a favorable determination letter on our 401K plan. The Company is still working with outside counsel to complete and file forms with the US Department of Labor.

NOTE_13_INCOME_TAXES

NOTE 13 - INCOME TAXES	3 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
NOTE 13 - INCOME TAXES	'
	NOTE 13 - INCOME TAXES
	Effective January 1, 2007, the Company adopted the provisions of ASC topic 740 (formerly FASB Interpretation No. 48/FASB Statement No. 109, “Accounting for Uncertainty in Income Taxes”). ASC topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a corporate tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits”. A liability is recognized (or amount of net operating loss carryforward or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC topic 740.
	In accordance with ASC topic 740, interest costs related to unrecognized tax benefits are required to be calculated (if applicable) and would be classified as “Interest expense, net”. Penalties if incurred would be recognized as a component of “Selling, general and administrative” expenses.
	The Company files corporate income tax returns in the United States (federal) and in various state and local jurisdictions. In most instances, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years prior to 2008.
	The Company netted a deferred tax asset of $2,936 and a deferred tax liability of $462 as of September 30, 2013, primarily relating to net operating loss carryforwards of approximately $142,788 available to offset future taxable income through 2030. The net operating losses begin to expire in 2019 for federal tax purposes and in 2013 for state income tax purposes.
	The ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers projected future taxable income and tax planning strategies in making this assessment. At present, the Company does have a sufficient history of income and anticipates profitability in the coming years and has concluded that it is more-likely-than-not that the Company will be able to realize a portion of its tax benefits in the near future and therefore a valuation allowance was established for the partial value of the deferred tax asset.
	A valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of any portion or all of the valuation. Should the Company become profitable in future periods with supportable trends, the valuation allowance will be reversed accordingly.

NOTE_14_SUBSEQUENT_EVENTS

NOTE 14 - SUBSEQUENT EVENTS	3 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
NOTE 14 - SUBSEQUENT EVENTS	'
	NOTE 14 – SUBSEQUENT EVENTS
	During the period from October 1, 2013 through October 31, 2013, the Company issued 5 shares of common stock for costs and expenses of $45 and 8 shares of common stock to consultants as compensation valued at $67 under a stock bonus plan. Options for 10 shares pursuant to the 2005 Incentive Stock Option Plan were exercised for $31.

NOTE_2_SUMMARY_OF_SIGNIFICANT_1

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2013
Note 2 - Summary Of Significant Accounting Policies Policies	'
Principles of Consolidation	'
	Principles of Consolidation
	The unaudited condensed consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships (collectively the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation.
Earnings Per Share	'
	Earnings Per Share
	Basic earnings per share (“EPS”) is computed based upon the weighted average number of shares of common stock and stock equivalents outstanding, net of common stock. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class method”, the Company used the Two-Class method for calculating basic income per share and applied the if converted method in calculating diluted income per share for the three months ended September 30, 2013 and 2012.
	Diluted EPS reflects the potential dilution from the exercise or conversion of all dilutive securities into common stock based on the average market price of common shares outstanding during the period. For the three months ended September 30, 2013 and 2012, diluted EPS for common shareholders includes 128 shares upon conversion of Class C Common.
		Three months ended						Three months ended
		30-Sep-13						30-Sep-12
		Total		Common Stock		Class C Common Stock		Total		Common Stock		Class C Common Stock
	Basic
	Numerator:	$	2,437	$	2,277	$	41	$	1,452	$	1,355	$	25
	Net income available to common stockholders
	Denominator:		5,978		5,978		383		5,901		5,901		383
	Weighted average shares outstanding
	Basic income per common share	$	0.41	$	0.38	$	0.11	$	0.25	$	0.23	$	0.06
	Diluted
	Denominator:				5,978		383				5,901		383
	Weighted average shares outstanding
	Stock options				—		—				—		—
	Convertible Class C Stock				128		—				128		—
	Total Denominator for diluted earnings per share				6,106		383				6,029		383
	Diluted income per common share			$	0.37	$	0.11			$	0.22	$	0.06
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In July 2012, the FASB issued ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350) Testing Indefinite-Lived Intangible Assets for Impairment. This ASU simplifies how entities test indefinite-lived intangible assets for impairment which improve consistency in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s condensed consolidated financial position and results of operations.
	The FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial position and results of operations.
	FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of September 30, 2013 that will become effective in subsequent periods; however, management does not believe that any of those updates would have significantly affected our financial accounting measures or disclosures had they been in effect during 2013 or 2012, and it does not believe that any of those pronouncements will have a significant impact on our consolidated financial statements at the time they become effective.
Reclassifications	'
	Reclassifications
	Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifcations did not have any effect on reported consolidated net income for any periods presented.

NOTE_2_SUMMARY_OF_SIGNIFICANT_2

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Earnings Per Share	'
	Earnings per share
		Three months ended						Three months ended
		30-Sep-13						30-Sep-12
		Total		Common Stock		Class C Common Stock		Total		Common Stock		Class C Common Stock
	Basic
	Numerator:	$	2,437	$	2,277	$	41	$	1,452	$	1,355	$	25
	Net income available to common stockholders
	Denominator:		5,978		5,978		383		5,901		5,901		383
	Weighted average shares outstanding
	Basic income per common share	$	0.41	$	0.38	$	0.11	$	0.25	$	0.23	$	0.06
	Diluted
	Denominator:				5,978		383				5,901		383
	Weighted average shares outstanding
	Stock options				—		—				—		—
	Convertible Class C Stock				128		—				128		—
	Total Denominator for diluted earnings per share				6,106		383				6,029		383
	Diluted income per common share			$	0.37	$	0.11			$	0.22	$	0.06

NOTE_3_ACCOUNTS_RECEIVABLE_MED1

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLES AND MANAGEMENT AND OTHER FEES RECEIVABLE (USD $) (Tables)	3 Months Ended
	Sep. 30, 2013
Receivables [Abstract]	'
Receivables - net	'
	Receivables, net is comprised of the following at September 30, 2013:
		Gross		Allowance for		Net
		Receivable		doubtful accounts
	Receivables from equipment sales and service contracts	$	5,283	$	257	$	5,026
	Receivables from equipment sales and service contracts - related party	$	90		—	$	90
	Medical Receivable	$	13,176	$	4,624	$	8,552
	Management and other fees receivables	$	21,076	$	9,001	$	12,075
	Management and other fees receivables from related medical practices ("PC’s")	$	3,146	$	403	$	2,743
Patient fee revenue	'
		For the Three Months Ended
		September 30,
		2013		2012
	Commercial Insurance/ Managed Care	$	1,100	$	—
	Medicare/Medicaid		379		—
	Workers' Compensation/Personal Injury		2,895		—
	Other		1,453		—
	Patient Fee Revenue, net of contractual allowances and discounts		5,827		—
	Provision for Bad Debts		-2,040		—
	Net Patient Fee for Revenue	$	3,787	$	—

NOTE_4_INVENTORIES_Tables

NOTE 4 - INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventory
		September 30,		June 30,
		2013		2013
	Purchased parts, components and supplies	$	1,811	$	1,784
	Work-in-process		315		293
	TOTAL INVENTORIES	$	2,126	$	2,077

NOTE_5_CUSTOMER_ADVANCES_Table

NOTE 5 - CUSTOMER ADVANCES (Tables)	3 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Total Customer Advances - Net	'
	Customer Advances
	Total advances	$	4,287
	Less: Advances on contracts under construction		2,370
	Total customer advances	$	1,917

NOTE_6_OTHER_INTANGIBLE_ASSETS1

NOTE 6 - OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Other intangible assets net of accumulated amortization	'
	Other Intangible Assets
		September 30,		June 30,
		2013		2013
	Capitalized software development costs	$	7,669	$	7,669
	Patents and copyrights		4,241		4,194
	Non-compete		4,100		4,100
	Customer relationships		3,800		3,800
	Gross Other intangible assets		19,810		19,763
	Less: Accumulated amortization		8,202		7,859
	Other Intangible Assets	$	11,608	$	11,904

NOTE_7_OTHER_CURRENT_LIABILITI1

NOTE 7 - OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]	'
Total Other Current Liabilities	'
	Total Other Current Liabilities
		30-Sep-13		30-Jun-13
	Accrued salaries, commissions and payroll taxes	$	922	$	711
	Accrued interest		117		117
	Litigation accruals		849		809
	Sales tax payable		2,924		2,859
	Legal and other professional fees		507		569
	Accounting fees		184		305
	Insurance premiums		72		13
	Interest and penalty - sales tax		2,376		2,322
	Penalty  - 401k plan		250		250
	Rent		124		148
	Other		686		533
	TOTAL OTHER CURRENT LIABILITIES	$	9,011	$	8,636

NOTE_9_CONTROLLING_AND_NONCONT1

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS (Tables)	3 Months Ended
	Sep. 30, 2013
Business Combinations [Abstract]	'
Estimated fair values of the assets and liabilities assumed at acquisition date	'
	Estimated fair values of the assets and liabilities assumed at acquisition date
	Management fee receivable	$	6,667
	Medical receivables		7,390
	Prepaid expenses and other current assets		10
	Property and equipment		14,913
	Intangible assets		9,200
	Goodwill		1,767
	Other assets		333
	Other current liabilities		(6	)
	Long term debt		(274	)
	Net assets acquired	$	40,000
Fair value of intangible assets excluding goodwill	'
	Fair value of intangible assets excluding goodwill
		Fair Value
	Non compete	$	4,100		7 years
	Customer relationships		3,800		20 years
	Developed software		1,300		5 years
	Total intangible assets	$	9,200
Unaudited pro forma information assuming HDM acquisition completed as of July 1, 2012	'
	Unaudited pro forma information assuming HDM acquisition completed as of July 1, 2012
		FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012
	Total Revenues - Net	$	19,194
	Net Income - Controlling Interests		4,698
	Net Income Available to Common Stockholders		4,385
	Net Income Available to Class A Non-Voting Preferred Stockholders		233
	Net Income Available to Class C Common Stockholders		80
	Basis Net Income Per Common Share Available to Common Stockholders	$	0.74
	Diluted Net Income Per Common Share Available to Common Stockholders	$	0.73
	Basic and Diluted Income Per Share - Common C	$	0.21
	Weighted Average Basic Shares Outstanding		5,901
	Weighted Average Diluted Shares Outstanding		6,029
	Weighted Average Basic and Diluted Shares Outstanding - Class C Common		383

NOTE_10_SEGMENT_AND_RELATED_IN1

NOTE 10 - SEGMENT AND RELATED INFORMATION (Tables)	3 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
Segment And Related Information Table	'
	SEGMENT AND RELATED INFORMATION
		Medical		Management		Totals
		Equipment		Of Diagnostic
				Imaging
				Centers
	For the three months ended Sept. 30, 2013
	Net revenues from external customers	$	2,568	$	14,263	$	16,831
	Inter-segment net revenues	$	495	$	—	$	495
	Income from operations	$	162	$	3,891	$	4,053
	Depreciation and amortization	$	108	$	874	$	982
	Capital expenditures	$	47	$	182	$	229
	For the three months ended Sept. 30, 2012
	Net revenues from external customers	$	3,777	$	5,734	$	9,511
	Inter-segment net revenues	$	202	$	—	$	202
	Income from operations	$	227	$	1,649	$	1,876
	Depreciation and amortization	$	158	$	257	$	415
	Capital expenditures	$	71	$	176	$	247

NOTE_2_SUMMARY_OF_SIGNIFICANT_3

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details) (USD $)	3 Months Ended			9 Months Ended	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012
			Common Stock	Common Stock	Class C Common Stock	Class C Common Stock
Basic and diluted - Numerator: Net income available to common stockholders	$2,437	$1,452	$1,355	$2,277	$41	$25
Basic and diluted - Denominator: Weighted average shares outstanding	5,978,000	5,901,000	5,901,000	5,978,000	383,000	383,000
Basic income per common share	$0.41	$0.25	$0.23	$0.38	$0.11	$0.06
Diluted - Denominator: Stock options	'	'	'	'	'	'
Diluted - Denominator: Convertible Class C Stock	'	'	128,000	128,000	'	'
Total diluted denominator: For diluted income per common share calculation	'	'	6,029,000	6,106,000	383,000	383,000
Diluted income per common share	'	'	$0.22	$0.37	$0.11	$0.06

NOTE_3_ACCOUNTS_RECEIVABLES_Re

NOTE 3 - ACCOUNTS RECEIVABLES - Receivables, Net - (Details) (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
net receivable	$5,026	$4,444
Receivables from equipment sales and service contracts	'	'
Gross Receivable	5,283	'
Allowance for doubtful accounts	257	'
net receivable	5,026	'
Receivables from equipment sales and service contracts - related party	'	'
Gross Receivable	90	'
Allowance for doubtful accounts	'	'
net receivable	90	'
Medical Receivables	'	'
Gross Receivable	13,176	'
Allowance for doubtful accounts	4,624	'
net receivable	8,552	'
Management and other fees Receivables	'	'
Gross Receivable	21,076	'
Allowance for doubtful accounts	9,001	'
net receivable	12,075	'
Management and other fees Receivables from related medical practices (PC's)	'	'
Gross Receivable	3,146	'
Allowance for doubtful accounts	403	'
net receivable	$2,743	'

NOTE_3_ACCOUNTS_RECEIVABLE_Pat

NOTE 3 - ACCOUNTS RECEIVABLE - Patient Fee Revenue - (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Note 3 - Accounts Receivable - Patient Fee Revenue - Details	'	'
Commercial Insurance/ Managed Care	$1,100	'
Medicare/Medicaid	379	'
Workers' Compensation/ Personal Injury	2,895	'
Other	1,453	'
Patient Fee Revenue, net of Contractual Allowances and Discounts	5,827	'
Provision for Bad Debts	-2,040	'
Net Patient Fee for Revenue	$3,787	'

NOTE_4_INVENTORIES_Details_Nar

NOTE 4 - INVENTORIES (Details Narrative) (USD $)	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified			InventoriesMember
Purchased parts, components and supplies	$1,811	'	$1,784
Work-in-process	315	'	293
Total inventories	$2,126	$2,077	$2,077

NOTE_5_CUSTOMER_ADVANCES_Detai

NOTE 5 - CUSTOMER ADVANCES - (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Notes to Financial Statements	'
Total advances	$4,287
Advances on contracts under construction	-2,370
Total customer advances	$1,917

NOTE_6_OTHER_INTANGIBLE_ASSETS2

NOTE 6 - OTHER INTANGIBLE ASSETS - Other intangible assets net of accumulated amortization (Details) (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Accumulated Amortization	$8,202	$7,859
Intangible asset value, net	11,608	11,904
Software Development Costs	'	'
Intangible asset value, gross	7,669	7,669
Patents and copyrights	'	'
Intangible asset value, gross	4,241	4,194
Non-compete Agreements	'	'
Intangible asset value, gross	4,100	4,100
Customer Relationships	'	'
Intangible asset value, gross	3,800	3,800
Other Intangible Assets	'	'
Intangible asset value, gross	$19,810	$19,763

NOTE_7_OTHER_CURRENT_LIABILITI2

NOTE 7 - OTHER CURRENT LIABILITIES Other Current Liabilities - (Details) (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Payables and Accruals [Abstract]	'	'
Accrued salaries, commissions and payroll taxes	$922	$711
Accrued interest	117	117
Litigation accruals	849	809
Sales tax payable	2,924	2,859
Legal and other professional fees	507	569
Accounting fees	184	305
Insurance premiums	72	13
Interest and penalty - sales tax	2,376	2,322
Penalty - 401k plan	250	250
Rent	124	148
Other	686	533
Total other current liabilities	$9,011	$8,636

NOTE_9_CONTROLLING_AND_NONCONT2

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - Estimated Fair Values at Acquisition Date - (Details) (USD $)	Mar. 05, 2013
In Thousands, unless otherwise specified
Business Combinations [Abstract]	'
Management fee receivable	$6,667
Medical receivables	7,390
Prepaid expenses and other current assets	10
Property and equipment	14,913
Intangible assets	9,200
Goodwill	1,767
Other assets	333
Other current liabilities	-6
Long term debt	-274
Net assets acquired	$40,000

NOTE_9_CONTROLLING_AND_NONCONT3

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - Fair value of goodwill and estimated useful life - (Details) (USD $)	Mar. 05, 2013	Mar. 05, 2013	Sep. 30, 2012	Mar. 05, 2013
In Thousands, unless otherwise specified		Non-compete Agreements	Customer Relationships	Developed Software
Fair value of intangible asset	$9,200	$4,100	$3,800	$1,300
Useful life of intangible asset	'	'7 years	'20 years	'5 years

NOTE_9_CONTROLLING_AND_NONCONT4

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - Pro forma of HDM Operating Results - (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Total Revenues - Net	$16,831	$9,511
Net Income - Controlling Interests	2,437	1,452
Net Income Available to Common Stockholders	2,277	1,355
Net Income Available to Class A Non-Voting Preferred Stockholders	119	72
Net Income Available to Class C Common Stockholders	41	25
Basic Net Income Per Common Share Available to Common Stockholders	$0.38	$0.23
Diluted Net Income Per Common Share Available to Common Stockholders	$0.37	$0.22
Basic and Diluted Income Per Share - Common C	$0.11	$0.06
Weighted Average Basic Shares Outstanding	5,978	5,901
Weighted Average Diluted Shares Outstanding	6,106	6,029
Heatlth Diagnostics Management	'	'
Total Revenues - Net	19,194	'
Net Income - Controlling Interests	4,698	'
Net Income Available to Common Stockholders	4,385	'
Net Income Available to Class A Non-Voting Preferred Stockholders	233	'
Net Income Available to Class C Common Stockholders	$80	'
Basic Net Income Per Common Share Available to Common Stockholders	$0.74	'
Diluted Net Income Per Common Share Available to Common Stockholders	$0.73	'
Basic and Diluted Income Per Share - Common C	$0.21	'
Weighted Average Basic Shares Outstanding	5,901,000	'
Weighted Average Diluted Shares Outstanding	6,029,000	'
Weighted Average Basic and Diluted Shares Outstanding - Class C Common	383,000	'

NOTE_10_SEGMENT_AND_RELATED_IN2

NOTE 10 - SEGMENT AND RELATED INFORMATION - Segment Information - (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Net revenues from external customers	$16,831	$9,511
Inter-segment net revenues	495	202
Income from operations	4,053	1,876
Depreciation and amortization	982	415
Capital expenditures	229	247
Medical Equipment	'	'
Net revenues from external customers	2,568	3,777
Inter-segment net revenues	495	202
Income from operations	162	227
Depreciation and amortization	108	158
Capital expenditures	47	71
Management Of Diagnostic Imaging Centers	'	'
Net revenues from external customers	14,263	5,734
Inter-segment net revenues	'	'
Income from operations	3,891	1,649
Depreciation and amortization	874	257
Capital expenditures	$182	$176

NOTE_2_SUMMARY_OF_SIGNIFICANT_4

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Details Narrative)	Sep. 30, 2013	Jun. 30, 2013
Accounting Policies [Abstract]	'	'
Shares included upon conversion of Class C Common to calculate a diluted EPS	128,000	128,000

NOTE_3_ACCOUNTS_RECEIVABLE_Man

NOTE 3 - ACCOUNTS RECEIVABLE - Management and other Fees Receivable - (Details Narrative)	Sep. 30, 2013	Sep. 30, 2012
Note 3 - Accounts Receivable - Management And Other Fees Receivable - Details Narrative	'	'
Net revenues derived from no-fault and personal injury protection claims	51.00%	38.00%
Net revenues from managementand other fees charged to relatede PCs	13.90%	20.70%

NOTE_6_OTHER_INTANGIBLE_ASSETS3

NOTE 6 - OTHER INTANGIBLE ASSETS - (Details Narrative) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Patents and copyrights	'	'
Amortization of intangible assets	$44	$41
Software Development Costs	'	'
Amortization of intangible assets	109	85
Non-compete Agreements	'	'
Amortization of intangible assets	146	0
Customer Relationships	'	'
Amortization of intangible assets	$44	$0

NOTE_8_STOCKHOLDERS_EQUITY_Det

NOTE 8 - STOCKHOLDERS EQUITY - (Details Narrative) (USD $)	1 Months Ended	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Oct. 31, 2013	Sep. 30, 2013
Equity [Abstract]	'	'
Shares issued as compensation	8,000	3,000
The value of shares issued as compensation	'	$19
Shares issued as costs and expenses	5,000	15,000
The value of shares issued as cost and expenses	'	$110

NOTE_9_CONTROLLING_AND_NONCONT5

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - (Details Narrative) (USD $)	Mar. 05, 2013
Business Combinations [Abstract]	'
HMCA controlling interest	50.50%
HMCA contribution to HDM	$20,200,000
Outside investors contribution to HDM	19,800,000
Capital contribution company borrowed from bank	14,000,000
Term loan portion from bank	11,000,000
Revolving credit portion from bank	$3,000,000
Term loan interest rate per annum	4.75%
Revolving credit note interest per annum	4.00%

NOTE_11_SUPPLEMENTAL_CASH_FLOW1

NOTE 11 - SUPPLEMENTAL CASH FLOW INFORMATION - (Details Narrative) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Note 11 - Supplemental Cash Flow Information - Details Narrative	'	'
Interest paid	$189	$33
Income Taxes Paid	$120	$147

NOTE_12_COMMITMENTS_AND_CONTIN1

NOTE 12 - COMMITMENTS AND CONTINGENCIES - (Details Narrative) (USD $)	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Tax Obligations	$2,682,000
Tax Interest And Penalties	2,376,000
Provisions ForTax Penalties	$250,000

NOTE_13_INCOME_TAXES_Details_N

NOTE 13 - INCOME TAXES - (Details Narrative) (USD $)	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Net Deferred Tax Asset	$2,936,000
Net Deferred Tax Liability	462,000
Net Deferred Operating Loss Carryforwards	$142,788,000

NOTE_14_SUBSEQUENT_EVENTS_Deta

NOTE 14 - SUBSEQUENT EVENTS - (Details Narrative) (USD $)	1 Months Ended	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Oct. 31, 2013	Sep. 30, 2013
Subsequent Events [Abstract]	'	'
Common shares issued for costs & expenses (shares)	5,000	15,000
Common shares issued for costs & expenses (value)	$45	'
Common shares issued for compensation (shares)	8,000	3,000
Common shares issued for compensation (value)	67	'
2005 Incentive Stock Option Plan exercised (shares)	10,000	'
2005 Incentive Stock Option Plan exercised (value)	$31	'