FONAR (FONR) 10-K 29 Sep 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2015	Sep. 11, 2015
Document And Entity Information
Entity Registrant Name	Fonar Corporation
Entity Central Index Key	355,019
Document Type	10-K
Document Period End Date	Jun. 30, 2015
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	Accelerated Filer
Entity Public Float		$ 63,000,000
Entity Common Stock, Shares Outstanding		6,050,840
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

Balance Sheets

Balance Sheets - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Current Assets:
Cash and cash equivalents	$ 9,448,798	$ 9,951,736
Accounts receivable - net of allowances for doubtful accounts of $362,362 and $257,362 at June 30, 2015 and 2014, respectively	3,790,981	4,450,125
Medical receivable - net of allowances for doubtful accounts of $15,459,156 and $14,032,067 at June 30, 2014 and 2013, respectively, respectively	9,082,319	8,807,856
Management and other fees receivable - net of allowances for doubtful accounts of $13,271,651 and $10,901,619 at June 30, 2015 and 2014, respectively	14,057,962	11,970,388
Management and other fees receivable - related medical practices - net of allowances for doubtful accounts of $403,047 at June 30, 2015 and 2014	3,507,204	3,426,982
Costs and estimated earnings in excess of billings on uncompleted contracts	681,660	759,809
Inventories	2,191,849	2,443,536
Prepaid expenses and other current assets	860,040	1,011,358
Total Current Assets	43,620,813	42,821,790
Deferred income tax asset	8,423,306	5,740,287
Property and equipment - net	12,901,195	15,029,729
Goodwill	1,767,098	1,767,098
Other intangible assets - net	8,950,160	10,508,843
Other Assets	829,505	922,096
Total Assets	76,492,077	76,789,843
Current Liabilities:
Current portion of long-term debt and capital leases	2,490,146	2,890,816
Accounts payable	1,782,442	2,481,997
Other current liabilities	8,252,633	8,750,286
Unearned revenue on service contracts	4,187,401	4,730,962
Customer deposits	1,937,813	1,926,813
Billings in excess of costs and estimated earnings on uncompleted contracts	142,217	142,217
Total Current Liabilities	18,792,652	20,923,091
Long-Term Liabilities:
Deferred Income Tax Liability	510,492	583,990
Due to related medical practices	236,920	234,581
Long-Term Debt and Capital Leases, Less Current Portion	5,699,302	8,481,830
Other Liabilities	469,198	659,759
Total Long-Term Liabilities	6,915,912	9,960,160
Total Liabilities	25,708,564	30,883,251
Stockholders' Equity:
Paid-in capital in excess of par value	175,447,586	175,284,437
Accumulated deficit	(136,348,635)	(149,259,286)
Notes receivable from employee stockholders	31,495	38,828
Treasury stock, at cost - 11,643 shares of common stock at June 30, 2015 and 2014	(675,390)	(675,390)
Total Fonar Corporation Stockholder Equity	38,392,742	25,311,608
Noncontrolling interests	12,390,771	20,594,984
Total Stockholders' Equity	50,783,513	45,906,592
Total Liabilities and Stockholders' Equity	76,492,077	76,789,843
Class A Non-Voting Preferred
Stockholders' Equity:
Preferred Stock Value	$ 31	$ 31
Class A Non-Voting Preferred Stock
Stockholders' Equity:
Preferred Stock Value
Common Stock
Stockholders' Equity:
Common Stock Value	$ 607	$ 606
Class B Members
Stockholders' Equity:
Common Stock Value
Class C Common Stock
Stockholders' Equity:
Common Stock Value	$ 38	$ 38

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Jun. 30, 2014
Class A Non-Voting Preferred
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Authorized	453,000	453,000
Preferred Stock, Issued	313,438	313,438
Preferred Stock, Outstanding	313,438	313,438
Class A Non-Voting Preferred Stock
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Authorized	567,000	567,000
Preferred Stock, Issued
Preferred Stock, Outstanding
Common Stock
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	8,500,000	8,500,000
Common Stock, Issued	6,062,483	6,057,483
Common Stock, Outstanding	6,050,840	6,045,840
Class B Members
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	227,000	227,000
Common Stock, Issued	146	146
Common Stock, Outstanding	146	146
Class C Common Stock
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	567,000	567,000
Common Stock, Issued	382,513	382,513
Common Stock, Outstanding	382,513	382,513

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Revenues
Product sales - net	$ 1,820,979	$ 1,877,932	$ 3,939,140
Service and repair fees - net	9,549,316	10,082,631	10,841,935
Service and repair fees - related parties - net	110,000	110,000	110,000
Patient revenue - net of contractual allowances and discounts	28,153,598	24,307,192	7,481,865
Provision for bad debts for patient fee	12,770,249	10,333,082	2,584,669
Management and other fees - net	34,805,627	34,839,969	21,493,599
Management and other fees - related medical practices - net	7,381,725	7,620,835	7,859,944
Total Revenues - Net	69,050,996	68,505,477	49,141,814
Costs and Expenses
Costs related to product sales	1,882,230	1,067,120	3,656,635
Costs related to service and repair fees	2,189,373	2,496,985	3,213,420
Costs related to service and repair fees -related parties	25,220	27,242	32,603
Costs related to patient fee revenue	7,939,524	7,670,484	2,704,758
Costs related to management and other fees	20,970,116	20,851,065	12,998,243
Costs related to management and other fees - related medical practices	5,397,818	5,134,553	3,515,706
Research and development	1,812,398	1,760,821	1,438,560
Selling, general and administrative, inclusive of compensatory element of stock issuances of $53,200, $223,000 and $415,021, for the years ended June 30, 2015, 2014 and 2013, respectively	13,459,408	15,388,239	12,501,621
Provision for bad debts	2,475,032	1,806,299	1,544,521
Total Costs and Expenses	56,151,119	56,202,808	41,606,067
Income from Operations	12,899,877	12,302,669	7,535,747
Other Income and (Expenses):
Interest expense	702,095	884,541	500,362
Investment income	225,270	238,928	217,598
Other income (expense) - net	394,810	(608,599)	725,488
Income before benefit (provision) for income taxes and noncontrolling interests	12,817,862	11,048,457	7,978,471
Benefit for Income Taxes	2,612,521	2,348,312	2,277,891
Net Income	15,430,383	13,396,769	10,256,362
Net Income - Noncontrolling Interests	2,519,732	3,000,639	1,577,820
Net Income - Attributable to FONAR	$ 12,910,651	$ 10,396,130	$ 8,678,542
Basic Net Income Per Common Share Available to Common Stockholders	$ 2.13	$ 1.73	$ 1.46
Weighted Average Basic Shares Outstanding - Common Stockholders	6,050,632	6,009,822	5,933,318
Common Stock
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 12,071,670	$ 9,720,030	$ 8,107,367
Basic Net Income Per Common Share Available to Common Stockholders	$ 2	$ 1.62	$ 1.37
Diluted Net Income Per Common Share Available to Common Stockholders	$ 1.95	$ 1.58	$ 1.34
Weighted Average Basic Shares Outstanding - Common Stockholders	6,050,632	6,009,822	5,933,318
Weighted Average Diluted Shares Outstanding - Common Stockholders	6,178,136	6,137,326	6,060,822
Class A Non Voting Preferred Stock
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 625,309	$ 503,911	$ 425,708
Class C Common Stock
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 213,672	$ 172,189	$ 145,467
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.56	$ 0.45	$ 0.38
Diluted Net Income Per Common Share Available to Common Stockholders	0.56	0.45	$ 0.38
Basic and Diluted Income Per Share - Common C	$ 0.44	$ 0.45
Weighted Average Basic Shares Outstanding - Common Stockholders	382,513	382,513	382,513
Weighted Average Diluted Shares Outstanding - Common Stockholders	382,513	382,513	382,513
Weighted Average Basic and Diluted Shares Outstanding - Class C Common	382,513	382,513	382,513

Statements of Operations (Paren

Statements of Operations (Parenthetical) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]
compensatory element of stock issuances	$ 53,200	$ 223,000	$ 415,021

Shareholders Equity and Compreh

Shareholders Equity and Comprehensive Income - USD ($)	Class A Non-Voting Preferred	Common Stock	Class C Common Stock	Paid-in Capital in Excess of Par Value	Accumulated Deficit	Notes Receivable from Employee Stockholders	Treasury Stock	Noncontrolling Interests	Total
Balance - Beginning, Shares at Jun. 30, 2012		590
Balance - Beginning, Value at Jun. 30, 2012	$ 31	$ 5,901,262	$ 38	$ 174,084,007	$ (168,333,958)	$ (70,813)	$ (675,390)	$ 6,096,560	$ 11,101,065
Net Income					$ 8,678,542			$ 1,577,820	10,256,362
Stock issued to employees under stock bonus plans, Shares		8
Stock issued to employees under stock bonus plans, Value		$ 67,870		$ 415,013					415,021
Payments on notes receivable from employee stockholders						$ 15,993			$ 15,993
Issuance of stock for goods and services, Shares
Issuance of stock for goods and services, Value
Redemption of noncontrolling interests								$ (1,424,900)	$ (1,424,900)
Buyout of noncontrolling interests								(564,315)	(564,315)
Distributions to noncontrolling interests								(1,799,950)	(1,799,950)
Proceeds from noncontrolling interests								$ 19,800,000	$ 19,800,000
Stock option exercised, Shares
Stock option exercised, Value
Balance - Ending, Shares at Jun. 30, 2013		598
Balance - Ending, Value at Jun. 30, 2013	$ 31	$ 5,969,132	$ 38	$ 174,499,020	$ (159,655,416)	$ (54,820)	$ (675,390)	$ 23,685,215	$ 37,799,276
Net Income					$ 10,396,130			$ 3,000,639	13,396,769
Stock issued to employees under stock bonus plans, Shares		2
Stock issued to employees under stock bonus plans, Value		$ 21,443		$ 222,998					223,000
Payments on notes receivable from employee stockholders						$ 15,992			15,992
Issuance of stock for goods and services, Shares		5
Issuance of stock for goods and services, Value		$ 45,265		$ 531,820					531,825
Redemption of noncontrolling interests								$ (1,125,100)	$ (1,125,100)
Buyout of noncontrolling interests
Distributions to noncontrolling interests								$ (4,965,770)	$ (4,965,770)
Proceeds from noncontrolling interests
Stock option exercised, Shares		1
Stock option exercised, Value		$ 10,000		$ 30,599					$ 30,600
Balance - Ending, Shares at Jun. 30, 2014		606
Balance - Ending, Value at Jun. 30, 2014	$ 31	$ 6,045,840	$ 38	$ 175,284,437	$ (149,259,286)	$ (38,828)	$ (675,390)	$ 20,594,984	45,906,592
Net Income					$ 12,910,651			$ 2,519,732	15,430,383
Stock issued to employees under stock bonus plans, Shares		1
Stock issued to employees under stock bonus plans, Value		$ 5,000		$ 53,199					53,200
Payments on notes receivable from employee stockholders						$ 7,333			7,333
Issuance of stock for goods and services, Shares
Issuance of stock for goods and services, Value				$ 109,950					109,950
Redemption of noncontrolling interests								$ (1,125,000)	(1,125,000)
Buyout of noncontrolling interests								(4,971,094)	(4,971,094)
Distributions to noncontrolling interests								$ (4,627,851)	$ (4,627,851)
Proceeds from noncontrolling interests
Stock option exercised, Shares
Stock option exercised, Value
Balance - Ending, Shares at Jun. 30, 2015
Balance - Ending, Value at Jun. 30, 2015	$ 31	$ 6,050,840	$ 38	$ 175,447,586	$ (136,348,635)	$ (31,495)	$ (675,390)	$ 12,390,771	$ 50,783,513

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities:
Net Income	$ 15,430,383	$ 13,396,769	$ 10,256,362
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,544,470	3,817,205	2,421,177
Abandoned patents or software written off	413,589	250,523	66,619
Provision for bad debts	2,475,032	1,806,299	1,544,521
Deferred income tax benefit - net	$ (2,756,517)	$ (2,682,405)	(2,473,892)
Gain on Sale of Equipment			$ (557,473)
Loss on disposition of equipment		$ 657,350
Gain on litigation settlement			$ (755,500)
Impairment on management agreement			357,500
Compensatory element of stock issuances	$ 53,200	$ 223,000	$ 415,021
Gain on extinguishment of debt	(394,797)
Stock issued for costs and expenses	$ 109,950	$ 531,825
Stock option exercised		30,600
(Increase) decrease in operating assets, net:
Accounts, medical and management fee receivables	$ (4,258,147)	$ (4,044,002)	$ (3,717,440)
Notes receivable	135,592	95,623	120,976
Costs and estimated earnings in excess of Billings on uncompleted contracts	78,149	(314,067)	682,854
Inventories	251,687	(366,448)	117,861
Prepaid expenses and other current assets	67,192	46,967	(698,284)
Other assets	41,125	131,811	(204,037)
Increase (decrease) in operating liabilities, net:
Accounts payable	(699,555)	(270,482)	628,033
Other current liabilities	(1,041,214)	295,219	(414,402)
Customer advances	$ 11,000	$ 68,943	(567,914)
Billings in excess of costs and estimated earnings on uncompleted contracts			142,217
Other Liabilities	$ (190,561)	$ (268,261)	253,559
Due to related medical practices	$ 2,339	3,955	1,885
Income tax payable		(19,501)	(80,499)
NET CASH PROVIDED BY OPERATING ACTIVITIES	$ 13,272,917	13,390,923	7,539,144
Cash Flows from Investing Activities:
Purchases of property and equipment	$ (131,308)	$ (620,697)	(1,135,382)
Cost of acquisition			(40,000,000)
Cost of patents	$ (139,534)	$ (214,211)	(159,907)
NET CASH USED IN INVESTING ACTIVITIES	$ (270,842)	$ (834,908)	(41,295,289)
Cash Flows from Financing Activities:
Proceeds from debt			14,689,646
Proceeds from sale of equipment			700,000
Proceeds from noncontrolling interests			19,800,000
Repayment of borrowings and capital lease obligations	$ (2,788,401)	$ (4,400,128)	(1,821,617)
Repayment of notes receivable from employee stockholders	7,333	15,992	15,993
Distributions to noncontrolling interests	(4,627,851)	(4,965,770)	(1,799,950)
Redemption of noncontroling Interests	(1,125,000)	$ (1,125,100)	(1,424,900)
Buyout of noncontroling Interest	(4,971,094)		(564,315)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(13,505,013)	$ (10,475,006)	29,594,857
Net Increase in Cash and Cash Equivalents	(502,938)	2,081,009	(4,161,288)
Cash and Cash Equivalents - Beginning of Period	9,951,736	7,870,727	12,032,015
Cash and Cash Equivalents - End of Period	$ 9,448,798	$ 9,951,736	$ 7,870,727

NOTE 1 - DESCRIPTION OF BUSINES

NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY AND CAPITAL RESOURCES	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY AND CAPITAL RESOURCES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2015, 2014 and 2013 NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY AND CAPITAL RESOURCES Description of Business FONAR Corporation (the “Company” or “FONAR”) is a Delaware corporation, which was incorporated on July 17, 1978. FONAR is engaged in the research, development, production and marketing of medical scanning equipment, which uses principles of Magnetic Resonance Imaging ("MRI") for the detection and diagnosis of human diseases. In addition to deriving revenues from the direct sale of MRI equipment, revenue is also generated from our installed-base of customers through our service and upgrade programs. FONAR, through its wholly-owned subsidiary Health Management Corporation of America ("HMCA") provides comprehensive management services to diagnostic imaging facilities. The services provided by the Company include development, administration, leasing of office space, facilities and medical equipment, provision of supplies, staffing and supervision of non-medical personnel, legal services, accounting, billing and collection and the development and implementation of practice growth and marketing strategies. On March 5, 2013, the Company acquired a majority interest in a newly formed limited liability company, Health Diagnostics Management LLC (HDM), a business managing 12 Stand-Up MRI centers and 2 other scanning centers located in Florida and New York for a total cost of $40 million. HDM has a perpetual existence. See Note 9 During May 2011, HMCA contributed all of its assets together with its liabilities to a newly formed limited liability company, Imperial Management Services, LLC (“Imperial”), which has a perpetual existence. As of June 30, 2015, Imperial manages 11 diagnostic imaging facilities which are located in the states of New York and Florida.

NOTE 2 - SUMMARY OF SIGNIFICANT

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships. The operating activities of subsidiaries are included in the accompanying consolidated statements from the date of acquisition. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The most significant estimates relate to receivable allowances, intangible assets, income taxes and related tax asset valuation allowances, useful lives of property and equipment, contingencies, revenue recognition and the assessment of litigation. In addition, healthcare industry reforms and reimbursement practices will continue to impact the Company's operations and the determination of contractual and other allowance estimates. Actual results could differ from those estimates. Inventories Inventories consist of purchased parts, components and supplies, as well as work-in-process, and are stated at the lower of cost, determined on the first-in, first-out method, or market. Property and Equipment Property and equipment procured in the normal course of business is stated at cost. Property and equipment purchased in connection with an acquisition is stated at its estimated fair value, generally based on an appraisal. Property and equipment is being depreciated for financial accounting purposes using the straight-line method over their estimated useful lives. Leasehold improvements are being amortized over the shorter of the useful life or the remaining lease term. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation of these assets are removed from the accounts and the resulting gains or losses are reflected in the results of operations. Expenditures for maintenance and repairs are charged to operations. Renewals and betterments are capitalized. Maintenance and repair expenses totaled approximately $1,200,000, $1,037,000 and $598,000 for the years ended June 30, 2015, 2014 and 2013, respectively. The estimated useful lives in years are generally as follows: Diagnostic equipment under capital lease 2.5 Diagnostic equipment 5–13 Research, development and demonstration equipment 3-7 Machinery and equipment 2-7 Furniture and fixtures 3-9 Leasehold improvements 2–10 Building 28 Long-Lived Assets The Company periodically assesses the recoverability of long-lived assets, including property and equipment and intangibles, other than goodwill, when there are indications of potential impairment, based on estimates of undiscounted future cash flows. The amount of impairment is calculated by comparing anticipated discounted future cash flows with the carrying value of the related asset. In performing this analysis, management considers such factors as current results, trends, and future prospects, in addition to other economic factors. Deferred Rent Rent expense is recorded on the straight-line method based on the total minimum rent payments required over the term of the lease. The cumulative difference between the lease expense recorded under this method and the contractual lease payment terms is recorded as deferred rent. Other Intangible Assets 1) Capitalized Software Development Costs Capitalization of software development costs begins upon the establishment of technological feasibility. Technological feasibility for the Company’s computer software is generally based upon achievement of a detail program design free of high risk development issues and the completion of research and development on the product hardware in which it is to be used. The establishment of technological feasibility and the ongoing assessment of recoverability of capitalized computer software development costs require considerable judgment by management with respect to certain external factors, including, but not limited to, technological feasibility, anticipated future gross revenue, estimated economic life and changes in software and hardware technology. Prior to reaching technological feasibility those costs are expensed as incurred and included in research and development. Amortization of capitalized software development costs commences when the related products become available for general release to customers. Amortization is provided on a product by product basis. The annual amortization is the greater of the amount computed using (a) the ratio that current gross revenue for a product bears to the total of current and anticipated future gross revenue for that product, or (b) the straight-line method over the remaining estimated economic life of the product. The Company periodically performs reviews of the recoverability of such capitalized software development costs. At the time a determination is made that capitalized amounts are not recoverable, based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. 2) Patents and Copyrights Amortization is calculated on the straight-line basis over a period ranging from 15 to 17 years. 3) Non-Competition Agreements The non-competition agreements are being amortized on the straight line basis over the length of the agreement (7 years). 4) Customer Relationships Amortization is calculated on the straight line basis over 20 years. Goodwill Generally accepted accounting principles in the United States require the Company to perform a goodwill impairment test annually and more frequently when negative conditions or a triggering event arises. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered potentially impaired and a second step is performed to measure the amount of impairment loss, if any. Acquired assets and assumed liabilities Pursuant to ASC No. 805-10-25, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, but during the allowed measurement period not to exceed one year from the acquisition date, the Company retrospectively adjusts the provisional amounts recognized at the acquisition date by means of adjusting the amount recognized for goodwill. Revenue Recognition Revenue on sales contracts for scanners, included in “product sales” in the accompanying consolidated statements of operations, is recognized under the percentage-of-completion method in accordance with FASB ASC 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts”. The Company manufactures its scanners under specific contracts that provide for progress payments. Production and installation take approximately three to six months. Revenue on scanner service contracts is recognized on the straight-line method over the related contract period, usually one year. Revenue from sales of other items is recognized upon shipment. Revenue under management contracts is recognized based upon contractual agreements for management services rendered by the Company primarily under various long-term agreements with various medical providers (the "PCs"). As of June 30, 2015, the Company has twenty management agreements of which three are with PC’s owned by Raymond V. Damadian, M.D., President and Chairman of the Board of FONAR (“the Related medical practices”) and seventeen are with PC’s, which are all located in the state of New York (“the New York PC’s”), owned by two unrelated radiologists. The contractual fees for services rendered to the PCs consists of fixed monthly fees per diagnostic imaging facility ranging from approximately $100,000 to $242,000. All fees are re-negotiable at the anniversary of the agreements and each year thereafter. Revenue under lease contracts is recognized based upon contractual agreements for the leasing of medical equipment primarily under long term contracts to various unrelated PC’s. The lease fee for the medical equipment consists of a fixed monthly fee of $2,000. All fees are re-negotiable at the anniversary of the agreements and each year thereafter. Patient fee revenue, net of contractual allowance and discounts, consist of net patient fees received from insurance companies, third party payors (including federal and state agencies under Medicare and Medicaid programs), hospitals and patients themselves based mainly upon established contractual billing rates, less allowances for contractual adjustments and discounts. Patient fee revenue is recorded in the period in which services are provided. The Company’s patient fee revenues, net of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2015, 2014 and 2013 are summarized in the following table. For the Year Ended June 30, 2015 2014 2013 Commercial Insurance/ Managed Care $ 4,398,589 $ 4,217,088 $ 1,360,536 Medicare/Medicaid 1,187,690 1,443,020 541,602 Workers' Compensation/Personal Injury 15,978,243 13,369,956 3,597,416 Other 6,589,076 5,277,128 1,982,311 Patient Fee Revenue, net of contractual allowances and discounts 28,153,598 24,307,192 7,481,865 Provision for Bad Debts (12,770,249 ) (10,333,082 ) (2,584,669 ) Net Patient Fee for Revenue $ 15,383,349 $ 13,974,110 $ 4,897,196 Allowance for Doubtful Accounts – Patient Fee The Company provides for medical receivables that could become uncollectible by establishing an allowance for doubtful accounts in order to adjust medical receivables to estimated net realizable value. In evaluating the collectability of medical receivables, the Company considers a number of factors, including the age of the account, historical collection experiences, payor type, current economic conditions and other relevant factors. There are various factors that impact collection trends, such as payor mix, changes in the economy, increase burden on copayments to be made by patients with insurance and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and the estimation process. Research and Development Costs Research and development costs are charged to expense as incurred. The costs of equipment that are acquired or constructed for research and development activities, and have alternative future uses (either in research and development, marketing or production), are classified as property and equipment and depreciated over their estimated useful lives. Advertising Costs Advertising costs are expensed as incurred. Advertising expense approximated $894,000, $889,000 and $835,000 for the years ended June 30, 2015, 2014 and 2013, respectively. Shipping Costs The Company’s shipping and handling costs are included in revenue from product sales and the related expense included in costs related to product sales is $9,293, $1,885 and $5,838 for the years ended June 30, 2015, 2014 and 2013, respectively. Income Taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Customer Advances Cash advances and progress payments received on sales orders are reflected as customer advances until such time as revenue recognition occurs. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class Method”, the Company used the Two-Class method for calculating basic earnings per share and applied the if converted method in calculating diluted earnings per share for the years ended June 30, 2015, 2014 and 2013. 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 years ended June 30, 2015, 2014 and 2013, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. June 30, 2015 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 12,910,651 $ 12,071,670 $ 213,672 Denominator: Weighted average shares outstanding 6,050,632 6,050,632 382,513 Basic income per common share $ 2.13 $ 2.00 $ 0.56 Diluted Denominator: Weighted average shares outstanding 6,050,632 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,178,136 382,513 Diluted income per common share $ 1.95 $ 0.56 June 30, 2014 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 10,396,130 $ 9,720,030 $ 172,189 Denominator: Weighted average shares outstanding 6,009,822 6,009,822 382,513 Basic income per common share $ 1.73 $ 1.62 $ 0.45 Diluted Denominator: Weighted average shares outstanding 6,009,822 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,137,326 382,513 Diluted income per common share $ 1.58 $ 0.45 June 30, 2013 Basic Total Common Stock Class C Common Stock Numerator: Net income Available to common stockholders $ 8,678,542 $ 8,107,367 $ 145,467 Denominator: Weighted average shares outstanding 5,933,318 5,933,318 382,513 Basic income per common share $ 1.46 $ 1.37 $ 0.38 Diluted Denominator: Weighted average shares outstanding 5,933,318 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,060,822 382,513 Diluted income per common share $ 1.34 $ 0.38 Cash and Cash Equivalents The Company considers all short-term highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Concentration of Credit Risk Cash: The Company maintains its cash and cash equivalents with various financial institutions, which exceed federally insured limits throughout the year. At June 30, 2015, the Company had cash on deposit of approximately $7,038,000 in excess of federally insured limits of $250,000. Related Parties: Net revenues from related parties accounted for approximately 11%, 11% and 16% of the consolidated net revenues for the years ended June 30, 2015, 2014 and 2013, respectively. Net management fee receivables from the related party medical practices accounted for approximately 12%, 12% and 9% of the consolidated accounts receivable for the years ended June 30, 2015, 2014 and 2013, respectively. See Note 3 regarding the Company’s concentrations in the healthcare industry. Fair Value of Financial Instruments The financial statements include various estimated fair value information at June 30, 2015 and 2014, as required by ASC topic 820, "Disclosures about Fair Value of Financial Instruments". Such information, which pertains to the Company's financial instruments, is based on the requirements set forth in that Statement and does not purport to represent the aggregate net fair value to the Company. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and cash equivalents: The carrying amount approximates fair value because of the short-term maturity of those instruments. Receivable and accounts payable: The carrying amounts approximate fair value because of the short maturity of those instruments. Notes receivable: The carrying amount approximates fair value because the discounted present value of the cash flow generated by the parties approximates the carrying value of the amounts due to the Company. Long-term debt and notes payable: The carrying amounts of debt and notes payable approximate fair value due to the length of the maturities, the interest rates being tied to market indices and/or due to the interest rates not being significantly different from the current market rates available to the Company. All of the Company's financial instruments are held for purposes other than trading. Recent Accounting Pronouncements The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “ Simplifying the Measurement of Inventory FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2015 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 2015 or 2014, 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 reclassifications did not have any effect on reported net income for any periods presented.

NOTE 3 - ACCOUNTS RECEIVABLE, M

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE	12 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE	NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE 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 (“PCs”) substantially consist of fees outstanding under management agreements. Payment of the outstanding fees is dependent on collection by the PCs 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 54%, 50% and 41%, respectively, of the PCs’ 2015, 2014 and 2013 net revenues 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 consolidated financial statements and have historically been within management's expectations. Net revenues from management and other fees charged to the related party medical practices accounted for approximately 11%, 11% and 16%, of the consolidated net revenues for the years ended June 30, 2015, 2014 and 2013, respectively. Tallahassee Magnetic Resonance Imaging, PA, Stand Up MRI of Boca Raton, PA and Stand Up MRI & Diagnostic Center, PA (all related party 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 following table sets forth the number of our facilities for the years ended June 30, 2015, 2014 and 2013. For The Year Ended June 30, 2015 2014 2013 Total Facilities Owned or Managed (at Beginning of Year) 24 24 11 Facilities Added by: Acquisition — — 14 Internal development — 1 — Managed Facilities Closed — (1 ) (1 ) Total Facilities Owned or Managed (at End of Year) 24 24 24

NOTE 4 - COSTS AND ESTIMATED EA

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	12 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS AND CUSTOMER ADVANCES	NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS Information relating to uncompleted contracts as of June 30, 2015 and 2014 is as follows: As of June 30, 2015 2014 Costs incurred on uncompleted contracts $ 1,861,350 $ 1,884,984 Estimated earnings 1,371,093 1,745,608 3,232,443 3,630,592 Less: Billings to date 2,693,000 3,013,000 $ 539,443 $ 617,592 Included in the accompanying consolidated balance sheets under the following captions: As of June 30, 2015 2014 Costs and estimated earnings in excess of billings on uncompleted contracts $ 681,660 $ 759,809 Less: Billings in excess of costs and estimated earnings on uncompleted contracts 142,217 142,217 $ 539,443 $ 617,592

NOTE 5 - INVENTORIES

NOTE 5 - INVENTORIES	12 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
NOTE 5 - INVENTORIES	NOTE 5 – INVENTORIES Inventories included in the accompanying consolidated balance sheets consist of: As of June 30, 2015 2014 Purchased parts, components and supplies $ 2,043,411 $ 2,093,671 Work-in-process 148,438 349,865 $ 2,191,849 $ 2,443,536

NOTE 6 - PROPERTY AND EQUIPMENT

NOTE 6 - PROPERTY AND EQUIPMENT	12 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
NOTE 6 - PROPERTY AND EQUIPMENT	NOTE 6 - PROPERTY AND EQUIPMENT Property and equipment, at cost, less accumulated depreciation and amortization, at June 30, 2015 and 2014, is comprised of: As of June 30, 2015 2014 Diagnostic equipment under capital leases $ 620,307 $ 620,307 Diagnostic equipment 17,396,797 17,396,797 Research, development and demonstration equipment 3,580,224 3,510,224 Machinery and equipment 2,069,055 2,069,055 Furniture and fixtures 2,550,627 2,550,627 Leasehold improvements 4,502,915 5,593,148 Building 939,614 939,614 31,659,539 32,679,772 Less: Accumulated depreciation and amortization 18,758,344 17,650,043 $ 12,901,195 $ 15,029,729 Depreciation and amortization of property and equipment for the years ended June 30, 2015, 2014 and 2013 was $2,259,842, $2,458,113 and $1,554,458, respectively. Depreciation and amortization of diagnostic equipment under capital leases for the years ended June 30, 2015, 2014 and 2013 was $0, $95,026 and $248,123, respectively. Accumulated depreciation and amortization of diagnostic equipment under capital leases was $620,307, $620,307 and $525,281 for the years ended June 30, 2015, 2014 and 2013, respectively. During the year ended June 30, 2015, the Company has retired assets that were fully depreciated with a cost and accumulated depreciation basis of $1,151,541.

NOTE 7 - OTHER INTANGIBLE ASSET

NOTE 7 - OTHER INTANGIBLE ASSETS	12 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
NOTE 7 - OTHER INTANGIBLE ASSETS	NOTE 7 - OTHER INTANGIBLE ASSETS Other intangible assets, net of accumulated amortization, at June 30, 2015 and 2014 are comprised of: As of June 30, 2015 2014 Capitalized software development costs $ 7,004,847 $ 7,418,436 Patents and copyrights 4,547,545 4,408,011 Non-competition agreements 4,100,000 4,100,000 Customer relationships 3,800,000 3,800,000 19,452,392 19,726,447 Less: Accumulated amortization 10,502,232 9,217,604 $ 8,950,160 $ 10,508,843 Information related to the above intangible assets for the years ended June 30, 2015, 2014 and 2013 is as follows: As of June 30, 2015 2014 2013 Balance – Beginning of Year $ 10,508,843 $ 11,904,248 $ 3,835,179 Amounts capitalized 139,534 214,211 9,359,907 Abandon software or patents written off (413,589 ) (250,523 ) (66,619 ) Impairment of management agreement — — (357,500 ) Amortization (1,284,628 ) (1,359,093 ) (866,719 ) Balance – End of Year $ 8,950,160 $ 10,508,843 $ 11,904,248 Amortization of patents and copyrights for the years ended June 30, 2015, 2014 and 2013 amounted to $183,272, $178,836 and $168,631, respectively. Amortization of capitalized software development costs for the years ended June 30, 2015, 2014 and 2013 was $325,642, $407,876 and $335,350, respectively. Amortization of management agreement for the years ended June 30, 2015, 2014 and 2013 amounted to $0, $0 and $100,833, respectively. Amortization of non-competition agreements for the years ended June 30, 2015, 2014 and 2013 amounted to $585,714, $585,714 and $195,238, respectively. Amortization of customer relationships for the years ended June 30, 2015, 2014 and 2013 amounted to $190,000, $186,667 and $66,667, respectively. The estimated amortization of other intangible assets for the five years ending June 30, 2020 and thereafter is as follows: For the Years Ending June 30, Total Patents and Copyrights Capitalized Software Development Costs Non- Customer Relation-ships 2016 $ 1,262,929 $ 195,404 $ 291,811 $ 585,714 $ 190,000 2017 1,246,672 210,958 260,000 585,714 190,000 2018 1,169,983 220,936 173,333 585,714 190,000 2019 1,002,736 227,022 — 585,714 190,000 2020 797,458 216,981 — 390,477 190,000 Thereafter 3,470,382 1,063,715 — — 2,406,667 $ 8,950,160 $ 2,135,016 $ 725,144 $ 2,733,333 $ 3,356,667 The weighted average amortization period for other intangible assets is 10.9 years and they have no expected residual value.

NOTE 8 - CAPITAL STOCK

NOTE 8 - CAPITAL STOCK	12 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
NOTE 8 - CAPITAL STOCK	NOTE 8 - CAPITAL STOCK Common Stock Cash dividends payable on the common stock shall, in all cases, be on a per share basis, one hundred twenty percent (120%) of the cash dividend payable on shares of Class B common stock and three hundred sixty percent (360%) of the cash dividend payable on a share of Class C common stock. Class B Common Stock Class B common stock is convertible into shares of common stock on a one-for-one basis. Class B common stock has 10 votes per share. There were 146, 146 and 146 of such shares outstanding at June 30, 2015, 2014 and 2013, respectively. Class C Common Stock On April 3, 1995, the stockholders ratified a proposal creating a new Class C common stock and authorized the exchange offering of three shares of Class C common stock for each share of the Company's outstanding Class B common stock. The Class C common stock has 25 votes per share, as compared to 10 votes per share for the Class B common stock and one vote per share for the common stock. The Class C common stock was offered on a three-for-one basis to the holders of the Class B common stock. Although having greater voting power, each share of Class C common stock has only one-third of the rights of a share of Class B common stock to dividends and distributions. Class C common stock is convertible into shares of common stock on a three-for-one basis. Class A Non-Voting Preferred Stock On April 3, 1995, the stockholders ratified a proposal consisting of the creation of a new class of Class A non-voting preferred stock with special dividend rights and the declaration of a stock dividend on the Company's common stock consisting of one share of Class A non-voting preferred stock for every five shares of common stock. The stock dividend was payable to holders of common stock on October 20, 1995. Class A non-voting preferred stock issued pursuant to such stock dividend approximates 313,000 shares. The Class A non-voting preferred stock is entitled to a special dividend equal to 3-1/4% of first $10 million, 4-1/2% of next $20 million and 5-1/2% on amounts in excess of $30 million of the amount of any cash awards or settlements received by the Company in connection with the enforcement of five of the Company's patents in its patent lawsuits, less the revised special dividend payable on the common stock with respect to one of the Company's patents. The Class A non-voting preferred stock participates on an equal per share basis with the common stock in any dividends declared and ranks equally with the common stock on distribution rights, liquidation rights and other rights and preferences (other than the voting rights). Stock Bonus Plans On April 23, 2010, the Board approved the 2010 Stock Bonus Plan. The plan entitles the Company to reserve 2,000,000 shares of common stock. On August 10, 2010, the Company filed Form S-8 to register the 2,000,000 shares. As of June 30, 2015, 953,367 shares of common stock of FONAR were available for future grant under this plan. For the years ended June 30, 2015, 2014 and 2013, 5,000, 46,708 and 67,870 shares were issued, respectively. Options The Company has stock option plans, which provide for the awarding of incentive and non-qualified stock options to employees, directors and consultants who may contribute to the success of the Company. The options granted vest either immediately or ratably over a period of time from the date of grant, typically three or four years, at a price determined by the Board of Directors or a committee of the Board of Directors, generally the fair value of the Company's common stock at the date of grant. The options must be exercised within ten years from the date of grant. FONAR’s 2002 Incentive Stock Option Plan (the “FONAR 2002 Plan”), adopted on July 1, 2002, is intended to qualify as an incentive stock option plan under Section 422A of the Internal Revenue Code of 1954, as amended. The FONAR 2002 Plan permits the issuance of stock options covering an aggregate of 100,000 shares of common stock of FONAR. The options have an exercise price equal to the fair market value of the underlying stock on the date the option is granted, are nontransferable, are exercisable for a period not exceeding ten years and expire upon the voluntary termination of employment. The FONAR 2002 Plan terminated on June 30, 2012. During the year ended June 30, 2014, 6,610 options expired, therefore no options remain outstanding. FONAR’s 2005 Incentive Stock Option Plan (the “FONAR 2005 Plan”), adopted on February 16, 2005,is intended to qualify as an incentive stock option plan under Section 422A of the Internal Revenue Code of 1954, as amended. The FONAR 2005 Plan permits the issuance of stock options covering an aggregate of 80,000 shares of common stock of FONAR. The options have an exercise price equal to the fair value of the underlying stock on the date the option is granted, are non-transferable, are exercisable for a period not exceeding ten years, and expire upon the voluntary termination of employment. The FONAR 2005 Plan terminated on February 14, 2015 and no options remain outstanding. Stock option activity and weighted average exercise prices under these plans and grants for the year ended June 30, 2015, 2014 and 2013 was as follows: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, June 30, 2012 14,022 27.76 — Granted — — — Exercised — — — Forfeited / Expired (7,412 ) 26.65 Outstanding, June 30, 2013 6,610 29.00 — Granted — — — Exercised — — — Forfeited / Expired (6,610 ) 29.00 — Outstanding, June 30, 2014 — — — Outstanding, June 30, 2015 — — — Exercisable at: June 30, 2013 6,610 $ 29.00 June 30, 2014 — $ — June 30, 2015 — $ —

NOTE 9 - CONTROLLING AND NONCON

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS	12 Months Ended
	Jun. 30, 2015
Noncontrolling Interest [Abstract]
NOTE 9 - CONTROLLING AND NON CONTROLLING 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 on 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 $20,200,000 to HDM and the group of outside investors contributed $19,800,000 for its non-controlling membership interest. 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 $1.5 million to outside investors) aggregating $35.9 million. Concurrently with the acquisition, HDM entered into several consulting and non-competition agreements for a consideration of $4.1 million. The acquisition was accounted for using the purchase method in accordance with ASC 805, “Business Combinations”. The Company recognized and measured 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 $ 6,667,259 Medical receivables 7,389,953 Prepaid expenses and other current assets 10,262 Property and equipment 14,912,650 Intangible assets 9,200,000 Goodwill 1,767,098 Other assets 332,949 Other current liabilities (6,323 ) Long term debt (273,848 ) Net assets acquired $ 40,000,000 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 $ 4,100,000 7 years Customer relationships 3,800,000 20 years Developed software 1,300,000 5 years Total intangible assets $ 9,200,000 The following unaudited pro forma results of operations for the twelve months ended June 30, 2013 assumes that the above acquisitions were made at the beginning of the year of acquisition. The unaudited pro forma information does not purport to be indicative of the results that would have been obtained if the acquisitions had actually occurred at the beginning of the year prior to acquisition, nor of the results that may be reported in the future. Year ended June 30, 2013 Total Revenues – Net 69,723,542 Net Income - Controlling Interests 17,442,337 Net Income Available to Common Stockholders 16,294,377 Net Income Available to Class A Non-Voting Preferred Stockholders 855,597 Net Income Available to Class C Common Stockholders 292,363 Basic Net Income Per Common Share Available to Common Stockholders 2.75 Diluted Net Income Per Common Share Available to Common Stockholders 2.69 Basic and Diluted Income Per Share - Common C 0.76 Weighted Average Basic Shares Outstanding 5,933,318 Weighted Average Diluted Shares Outstanding 6,060,822 Weighted Average Basic and Diluted Shares Outstanding - Class C Common 382,513 HDM’s total net revenues and income from operations for the period from the acquisition date (March 5, 2013) to June 30, 2013 was $14,834,143 and $1,958,714, respectively. On January 8, 2015, the Company purchased 20% of the Class A members ownership interest at a cost of $4,971,094. The Company has a 60.4% ownership interest in HDM after this transaction. Amount of each class of HDM members’ equity as of June 30, 2015, 2014 and 2013 June 30, 2015 June 30, 2014 June 30, 2013 Class A Members Class B Member Class A Members Class B Member Class A Members Class B Member Opening Members’ Equity $ 17,659,698 $ 21,113,266 $ 19,526,475 $ 20,763,830 $ — $ — Share of Net Income 1,988,915 5,704,999 2,266,473 4,566,186 543,225 1,397,080 Contributions — — — — 19,800,000 20,200,000 Buyout (4,971,094 ) — — — — — Distributions (3,925,350 ) (4,774,644 ) (4,133,250 ) (4,216,750 ) (816,750 ) (833,250 ) Ending Members’ Equity $ 10,752,169 $ 22,043,621 $ 17,659,698 $ 21,113,266 $ 19,526,475 $ 20,763,830 On May 2, 2011, the Company completed a private placement of equity and succeeded in raising $6,000,000. The offering consisted of Preferred Class A membership interests in a newly formed limited liability company, Imperial Management Services, LLC (“Imperial”). The Class B membership interests in Imperial, all of which were retained by the Company’s subsidiary, HMCA, hold a 75% equity interest in Imperial. The Class A membership interests are entitled to receive a dividend of 18% per annum of their cash capital contribution of $6,000,000. HMCA contributed all of its assets, together with its liabilities, to Imperial as HMCA’s capital contribution. The Imperial operating agreement provides for the Class A members to receive priority distributions until their original capital contributions are returned. Dividends are payable quarterly beginning August 1, 2011. On May 1, 2015, May 1, 2014 and on May 1, 2013, the Company returned a portion of the Class A Members capital contribution in the amount of $1,125,000, $1,125,100 and $1,424,900, respectively. As of June 30, 2015, the Company’s subsidiary, HMCA, now owns approximately 96% interest in Imperial Management Services. Amount of each class of Imperial members’ equity as of June 30, 2015, 2014 and 2013 June 30, 2015 June 30, 2014 June 30, 2013 Class A Members Class B Member Class A Members Class B Member Class A Members Class B Member Opening Members’ Equity $ 2,403,812 $ 11,079,317 $ 3,599,519 $ 7,772,781 $ 4,918,365 $3,824,945 Share of Net Income 405,634 3,921,129 536,913 3,306,536 959,254 3,947,836 Contributions — — — — — — Distributions (405,000 ) — (607,520 ) — (853,200 ) — Redemption (1,125,000 ) — (1,125,100 ) — (1,424,900 ) — Ending Members’ Equity $ 1,279,446 $ 15,000,446 $ 2,403,812 $ 11,079,317 $ 3,599,519 $7,772,781 On May 1, 2010, the Company purchased a 15.2% interest from an unrelated party of an entity that provides management services to a diagnostic center in the New York Metropolitan area. On January 1, 2011, the Company purchased an additional 34.8% interest by the issuance of a promissory note of $400,000. Commencing January 1, 2011, the Company consolidates the activity of this entity. On June 1, 2013, the Company purchased from the noncontrolling members their remaining 50% interest for $700,000. The Company also has a 50% controlling interest in an entity which the Company consolidates, that provides management services to a diagnostic center in the New York Metropolitan area. The center began operations during January 2012. The noncontrolling interest as of June 30, 2015, 2014 and 2013 aggregated $359,157, $531,474 and $559,221, respectively.

NOTE 10 - LONG-TERM DEBT, NOTES

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES	12 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES	NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES Long-term debt, notes payable and capital leases consist of the following: 2015 2014 Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $618,337 as of June 30, 2015. $ 416,844 $ 439,983 The revolving credit note is due by March 5, 2016. The Company can prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis. The note was paid in full September 2, 2014. The Company still has the ability to draw down on the line. — 300,000 The term loan is payable with interest only for 6 consecutive months commencing at the inception of the loan followed by 60 consecutive monthly installments, commencing October 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis. 7,149,986 9,349,994 Note payable requiring 12 consecutive interest only payments commencing at the inception of the loan followed by 48 consecutive monthly payments, commencing May 1, 2014. The note bears interest at a rate of 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis. 488,499 660,911 Other (including capital leases for property and equipment). 134,119 621,758 8,189,448 11,372,646 Less: Current portion 2,490,146 2,890,816 $ 5,699,302 $ 8,481,830 The maturities of long-term debt over the next five years and thereafter are as follows: Years Ending June 30, 2016 $ 2,490,146 2017 2,440,108 2018 2,372,514 2019 580,708 2020 32,944 Thereafter 273,028 $ 8,189,448

NOTE 11 - INCOME TAXES

NOTE 11 - INCOME TAXES	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
NOTE 11 - INCOME TAXES	NOTE 11 - 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 2009. The Company has recorded a deferred tax asset of $8,423,306 and a deferred tax liability of $510,492 as of June 30, 2015, primarily relating to net operating loss carryforwards of approximately $122,926,000 available to offset future taxable income through 2034. The net operating losses begin to expire in 2019 for federal tax purposes and in 2015 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 the remainder of the valuation. Should the Company continue to remain profitable in future periods with supportable trends, the valuation allowance will be reversed accordingly. Components of the current benefit for income taxes are as follows: Years Ended June 30, 2015 2014 2013 Current: Federal $ 114,683 $ 310,000 $ 125,000 State 29,313 24,093 71,001 Federal deferred taxes (2,353,124 ) (2,280,044 ) (2,336,454 ) State deferred taxes (403,393 ) (402,361 ) (137,438 ) $ (2,612,521 ) $ (2,348,312 ) $ (2,277,891 ) A reconciliation of the federal statutory income tax rate to the Company's effective tax rate as reported is as follows: Years Ended June 30, 2015 2014 2013 Taxes at federal statutory rate 35.0 % 34.0 % 34.0 % State and local income taxes (benefit), net of federal benefit 6.0 % 6.0 % 6.0 % Permanent differences 0.2 % (0.9 )% 0.6 % (Decrease) increase in the valuation allowance (65.4 )% (65.5 )% (73.2 )% True ups (3.2 )% (2.8 )% (3.0 )% Effective income tax rate (27.4 )% (29.2 )% (35.6 )% As of June 30, 2015, the Company has net operating loss (“NOL”) carryforwards of approximately $122,926,000 that will be available to offset future taxable income. The utilization of certain of the NOLs is limited by separate return limitation year rules pursuant to Section 1502 of the Internal Revenue Code. The Company has, for federal income tax purposes, research and development tax credit carryforwards aggregating $4,510,000. The Company also has $1,109,000 in alternative minimum tax credits. In addition, for New York State income tax purposes, the Company has tax credit carryforwards aggregating approximately $1,133,000 which, are accounted for under the flow-through method. The tax credit carryforwards expire during the years ending June 30, 2015 to June 30, 2034. Significant components of the Company's deferred tax assets and liabilities at June 30, 2015 and 2014 are as follows: June 30, 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 6,607,107 $ 6,961,016 Non-deductible accruals 115,346 65,108 Net operating carryforwards 49,170,420 54,900,136 Tax credits 6,751,692 5,644,097 Property and equipment and depreciation 111,190 195,408 Inventory 1,093,401 130,822 63,849,156 67,896,587 Valuation allowance (55,425,850 ) (62,156,300 ) Total deferred tax assets 8,423,306 5,740,287 Capitalized software development costs (510,492 ) (583,990 ) Total deferred tax liabilities (510,492 ) (583,990 ) Net deferred tax asset $ 7,912,814 $ 5,156,297 The valuation allowance for deferred tax assets decreased by approximately $6,730,000 during the year ended June 30, 2015 and decreased by approximately $6,392,000 during the year ended June 30, 2014.

NOTE 12 - OTHER CURRENT LIABILI

NOTE 12 - OTHER CURRENT LIABILITIES	12 Months Ended
	Jun. 30, 2015
Payables and Accruals [Abstract]
NOTE 12 - OTHER CURRENT LIABILITIES	NOTE 12 - OTHER CURRENT LIABILITIES Included in other current liabilities are the following: June 30, 2015 2014 Accrued salaries, commissions and payroll taxes $ 991,603 $ 834,324 Accrued interest 117,480 117,480 Litigation accruals 521,149 664,349 Sales tax payable 2,538,340 2,665,181 Legal and other professional fees 344,060 438,730 Accounting fees 235,000 325,139 Purchase scanners — 450,000 Self-funded health insurance reserve 510,150 298,004 Interest and penalty – sales tax 2,508,840 2,374,339 Other 486,011 582,740 $ 8,252,633 $ 8,750,286

NOTE 13 - COMMITMENTS AND CONTI

NOTE 13 - COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
NOTE 13 - COMMITMENTS AND CONTINGENCIES	NOTE 13 - COMMITMENTS AND CONTINGENCIES Leases The Company rents its operating facilities and certain equipment, pursuant to operating lease agreements expiring at various dates through November 2026. The leases for certain facilities contain escalation clauses relating to increases in real property taxes as well as certain maintenance costs. Future minimum operating lease commitments consisted of the following at June 30, 2015: Year Ending Facilities And Equipment 2016 $ 3,717,939 2017 3,191,082 2018 2,722,882 2019 2,129,428 2020 1,866,277 Thereafter 8,094,188 Total minimum obligations $ 21,721,796 *Includes new lease for the Company’s principal office in Melville, see subsequent events Note 20. Rent expense for operating leases approximated $4,266,000, $4,571,000 and $4,035,000, for the years ended June 30, 2015, 2014 and 2013, respectively. The expense for the year ended June 30, 2013 included an expense for early termination of a lease of approximately $690,000. The Company has received preliminary approval from the Suffolk County IDA on August 27, 2015 of a 50% property tax abatement, valued at $440,000, over a 10 year period commencing January 2017. Final approval from the IDA may come as soon as their next meeting on September 22, 2015. Employee Benefit Plans The Company has a non-contributory 401(k) Plan (the “401(k) Plan”). The 401(k) Plan covers all non-union employees who are at least 21 years of age with no minimum service requirements. There were no employer contributions to the Plan for the years ended June 30, 2015, 2014 and 2013. The stockholders of the Company approved the 2000 Employee Stock Purchase Plan (“ESPP”) at the Company’s annual stockholders’ meeting in April 2000. The ESPP provides for eligible employees to acquire common stock of the Company at a discount, not to exceed 15%. This plan has not been put into effect as of June 30, 2015. Stipulation Agreements The Company has entered into stipulation agreements with a number of its creditors that in the aggregate total $83,966, which is included in other current liabilities on the Company’s balance sheet as of June 30, 2015. The monthly payments total $19,552. 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. Golden Triangle Company v. Fonar Corporation et al, CV10-2933. The Plaintiff contracted with the Company to purchase a scanner, and paid $1,455,500 in advance. The scanner was never delivered, but Plaintiff never designed a site for delivery either. Alleging other damages, fraud and deceptive trade practices, Plaintiff sought up to $5,000,000. The Company made a motion to dismiss the complaint, the outcome of which left Plaintiff with only a cause of action for breach of contract. The claims against the individual officers and employees of the Company were dismissed. The Company filed its answer, together with a counterclaim alleging that the Plaintiff, by attempting to overcharge the end-customer, had damaged the Company’s reputation and ability to sell in Kuwait. The case was settled in June 2013 for $480,000 in cash and 30,000 shares of the Company’s common stock payable in installments. The Company recorded a gain of $755,500 on the statements of income for the year ended June 30, 2013. Matt Malek Madison v. Fonar Corporation, United States District Court, Northern District of California, was commenced by plaintiff on August 27, 2007 to recover a down payment for a scanner in the amount of $300,000, with interest. The plaintiff sought costs of suit and attorney’s fees as well. The Company answered the complaint and sued the plaintiff for breach of contract in the amount of $450,000. Although down payments are usually expressly non-refundable in the Company’s quotations and agreements, in this case, the quotation contemplated the sale of four scanners, and provided that the deposit would be refundable with interest, if the customer were unable to find suitable locations in the San Francisco Bay area. The issue was whether the customer made a good faith effort to find locations; the Company’s position was that the customer did not. The case went to trial before a judge; the parties submitted post-trial briefs, and judgment was awarded to the plaintiff. The Company appealed the trial court’s decision, but on January 31, 2012, the U.S. Court of Appeals for the 9th Circuit affirmed the lower court’s decision awarding the plaintiff the $300,000 deposit with prejudgment interest from July 1, 2006. The Company sought to have the Court of Appeals reconsider the decision en banc, (by all or a larger number of the judges on the Circuit Court of Appeals), but this was not granted. Although the case has been concluded, the plaintiff has not taken any steps to collect the judgment. As of June 30, 2015 and 2014, $300,000 was included in the Company’s accrued expenses. 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 have settled the case for $150,000 payable by Fonar in twelve installments and certain licenses and covenants not to sue. The $150,000 has been recorded in the Company’s consolidated statements of income for the year ended June 30, 2014. As of June 30, 2015, the Company has paid the $150,000. 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 covers 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. The Company has recorded tax obligations of approximately $2,538,000 plus interest and penalties of approximately $2,509,000. The Company is in the process of determining its regulatory requirements in order to become compliant. The Company maintains a self-funded health insurance program with a stop-loss umbrella policy with a third party insurer to limit the maximum potential liability for individual claims to $100,000 per person and for a maximum potential claim liability based on member enrollment. With respect to this program, the Company considers historical and projected medical utilization data when estimating its health insurance program liability and related expense. As of June 30, 2015 and 2014, the Company had approximately $510,000 and $298,000, respectively, in reserve for its self-funded health insurance programs. The reserves are included in “Other current liabilities” in the consolidated balance sheets. The Company regularly analyzes its reserves for incurred but not reported claims, and for reported but not paid claims related to its reinsurance and self-funded insurance programs. The Company believes its reserves are adequate. However, significant judgment is involved in assessing these reserves such as assessing historical paid claims, average lags between the claims’ incurred date, reported dates and paid dates, and the frequency and severity of claims. There may be differences between actual settlement amounts and recorded reserves and any resulting adjustments are included in expense once a probable amount is known. There were no significant adjustments recorded in the years covered by this report.

NOTE 14 - OTHER INCOME (EXPENSE

NOTE 14 - OTHER INCOME (EXPENSE)	12 Months Ended
	Jun. 30, 2015
Other Income and Expenses [Abstract]
NOTE 14 - OTHER (EXPENSE) INCOME	NOTE 14 - OTHER INCOME (EXPENSE) Other income (expense) consists of: For the Years Ended June 30, 2015 2014 2013 Loss on disposition of equipment $ — $ (657,350 ) $ — Loss from investment — — (48,777 ) Litigation settlement — 13,586 716,250 Gain on extinguishment of debt 394,797 — — Impairment of management agreement — — (357,500 ) Gain on sale of equipment — 40,000 557,473 Other income (expense) 13 (4,835 ) (141,958 ) $ 394,810 $ (608,599 ) $ 725,488

NOTE 15 - SUPPLEMENTAL CASH FLO

NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION	12 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Elements [Abstract]
NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION	NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION During the years ended June 30, 2015, 2014 and 2013, the Company paid $516,385, $668,475 and $389,907 for interest, respectively. During the years ended June 30, 2015, 2014 and 2013, the Company paid $143,996, $349,501 and $277,000 for income taxes, respectively.

NOTE 16 - DUE TO RELATED MEDICA

NOTE 16 - DUE TO RELATED MEDICAL PRACTICES	12 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
NOTE 16 - DUE TO RELATED MEDICAL PRACTICES	NOTE 16 – DUE TO RELATED PARTY MEDICAL PRACTICES In June 2009, an entity owned by the Company’s Chairman of the Board, Tallahassee Scanning Services PA, sold its Upright® MRI scanning system to the Company for $550,000 in exchange for 35 monthly payments of $18,769 to be made over a three year period, commencing October 18, 2009 including interest at a rate of 10.41% per annum. The Company used this scanning system to fulfill a sales order with an unrelated customer. The unpaid balance of as of June 30, 2015 and 2014 was $134,880. Other Related Party Transactions A son of the Company’s Chairman of the Board is one of the minority owners of Tritech Healthcare Management, which performs billing and collection services with respect to No-Fault and Workers’ Compensation claims of the Company’s clients. The monthly fee charged to the Company is $85,000. Bensonhurst MRI Limited Partnership, in which a son of the Company’s Chairman of the Board holds an interest, is party to an agreement with the Company for the service and maintenance of its Upright MRI Scanner for a price of $110,000 per annum. Integrity Healthcare Management Holdings, LLC, of which a son of the Company’s Chairman of the Board is an owner, has a 12% interest in Watchtower Entrepreneurs LLC. During fiscal 2015, Watchtower agreed to sell equipment and components to the Company for a total of $700,000.

NOTE 17 - SEGMENT AND RELATED I

NOTE 17 - SEGMENT AND RELATED INFORMATION	12 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
NOTE 17 - SEGMENT AND RELATED INFORMATION	NOTE 17 - SEGMENT AND RELATED INFORMATION The Company provides segment data in accordance with the provisions of ASC topic 280, “Disclosures about Segments of an Enterprise and Related Information”. The Company operates in two industry segments - manufacturing and the servicing of medical equipment and management of diagnostic imaging centers. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. All intersegment sales are market-based. The Company evaluates performance based on income or loss from operations. Summarized financial information concerning the Company’s reportable segments is shown in the following table: Manufacturing and Servicing of Medical Equipment Management of Diagnostic Imaging Centers Totals Fiscal 2015: Net revenues from external customers $ 11,480,295 $ 57,570,701 $ 69,050,996 Intersegment net revenues * $ 2,005,000 $ — $ 2,005,000 Income from operations $ 504,895 $ 12,394,982 $ 12,899,877 Depreciation and amortization $ 306,183 $ 3,238,287 $ 3,544,470 Compensatory element of stock issuances $ 53,200 $ — $ 53,200 Total identifiable assets $ 18,997,142 $ 57,494,935 $ 76,492,077 Capital expenditures $ 209,534 $ 61,308 $ 270,842 Fiscal 2014: Net revenues from external customers $ 12,070,563 $ 56,434,914 $ 68,505,477 Intersegment net revenues * $ 1,963,750 $ — $ 1,963,750 Income from operations $ 468,793 $ 11,833,876 $ 12,302,669 Depreciation and amortization $ 410,728 $ 3,406,477 $ 3,817,205 Compensatory element of stock issuances $ 223,000 $ — $ 223,000 Total identifiable assets $ 18,093,789 $ 58,696,054 $ 76,789,843 Capital expenditures $ 234,275 $ 600,633 $ 834,908 Fiscal 2013: Net revenues from external customers $ 14,891,075 $ 34,250,739 $ 49,141,814 Intersegment net revenues * $ 1,200,000 $ — $ 1,200,000 Income from operations $ 139,390 $ 7,396,357 $ 7,535,747 Depreciation and amortization $ 541,551 $ 1,879,626 $ 2,421,177 Compensatory element of stock issuances $ 415,021 $ — $ 415,021 Total identifiable assets $ 15,071,225 $ 58,079,425 $ 73,150,650 Capital expenditures $ 237,636 $ 25,170,303 $ 25,407,939 * Amounts eliminated in consolidation Export Product Sales The Company’s areas of operations are principally in the United States. The Company had export sales of medical equipment amounting to 74.2%, 42.4% and 3.8% of product sales revenues to third parties for the years ended June 30, 2015, 2014 and 2013, respectively. The foreign product sales, as a percentage of product sales to unrelated parties, were made to customers in the following countries: For the Years Ended June 30, 2015 2014 2013 United Arab Emirates -% 29.8 % -% Switzerland 2.2 12.4 — Canada 0.1 — — England — — 3.6 Germany 71.9 — 0.1 Libya — 0.2 0.1 74.2 % 42.4 % 3.8 % Foreign Service and Repair Fees The Company’s areas of service and repair are principally in the United States. The Company had foreign revenues of service and repair of medical equipment amounting to 7.4%, 8.8% and 8.2% of consolidated net service and repair fees for the years ended June 30, 2015, 2014 and 2013, respectively. The foreign service and repair fees, as a percentage of total service and repair fees, were provided principally to the following countries: For the Years Ended June 30, 2015 2014 2013 Spain 1.0 % 1.0 % 0.9 % Puerto Rico 1.2 1.1 1.0 Switzerland 0.7 1.1 1.1 Germany 0.7 0.4 — England 1.7 2.6 2.0 Holland 0.6 1.3 2.2 Canada 0.1 0.2 — Greece 0.2 — — Australia 1.2 1.1 1.0 7.4 % 8.8 % 8.2 % The Company does not have any material assets outside of the United States.

NOTE 18 - ALLOWANCE FOR DOUBTFU

NOTE 18 - ALLOWANCE FOR DOUBTFUL ACCOUNTS	12 Months Ended
	Jun. 30, 2015
Valuation and Qualifying Accounts [Abstract]
NOTE 18 - ALLOWANCE FOR DOUBTFUL ACCOUNTS	NOTE 18 – ALLOWANCE FOR DOUBTFUL ACCOUNTS The following represents a summary of allowance for doubtful accounts for the years ended June 30, 2015, 2014 and 2013, respectively: Description Balance June 30, 2014 Additions Deductions Balance June 30, 2015 Accounts receivable $ 257,362 (1) $ 105,000 $ — $ 362,362 Management and other fees receivable 10,901,619 (1) 2,370,032 — 13,271,651 Management and other fees receivable - related medical practices 403,047 — — 403,047 Medical receivables 14,032,067 (1) 12,770,249 11,343,160 15,459,156 Advance and notes to related parties 202,379 — 202,379 — Description Balance June 30, 2013 Additions Deductions Balance June 30, 2014 Accounts receivables $ 257,362 (1) $ — $ — $ 257,362 Management and other fees receivable 9,095,320 (1) 1,806,299 — 10,901,619 Management and other fees receivable - related medical practices 403,047 — — 403,047 Medical receivables 2,584,669 (1) 10,333,082 (1,114,316 ) 14,032,067 Advance and notes to related parties 202,379 — — 202,379 Description Balance June 30, 2012 Additions Deductions Balance June 30, 2013 Accounts receivables $ 1,852,987 (1) (92,454 ) $ 1,503,171 $ 257,362 Management and other fees receivable 7,458,345 (1) 1,636,975 — 9,095,320 Management and other fees receivable - related medical practices 403,047 — — 403,047 Medical receivables — (1) 2,584,669 2,584,669 Advance and notes to related parties 239,791 — 37,412 202,379 Notes receivable 65,000 — 65,000 — (1) Included in provision for bad debts.

NOTE 19 - QUARTERLY FINANCIAL D

NOTE 19 - QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Jun. 30, 2015
Note 19 - Quarterly Financial Data
NOTE 19 - QUARTERLY FINANCIAL DATA (UNAUDITED)	Quarterly Financial Data (Unaudited) (000’s omitted, except per share data) September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 Total Total Revenues – Net $ 17,985 $ 17,092 $ 17,096 $ 16,878 $ 69,051 Total Costs and Expenses 14,547 13,494 14,430 13,680 56,151 Net Income 3,256 3,455 2,519 6,200 15,430 Basic Net Income Per Common Share Available to Common Stockholders $ 0.39 $ 0.41 $ 0.31 $ 0.89 $ 2.00 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.39 $ 0.40 $ 0.31 $ 0.86 $ 1.95 September 30, 2013 December 31, 2013 March 31, 2014 June 30, 2014 Total Total Revenues – Net $ 16,831 $ 17,609 $ 17,040 $ 17,025 $ 68,505 Total Costs and Expenses 12,778 14,314 14,721 14,390 56,203 Net Income 3,620 3,048 2,147 4,582 13,397 Basic Net Income Per Common Share Available to Common Stockholders $ 0.38 $ 0.33 $ 0.27 $ 0.64 $ 1.62 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.37 $ 0.33 $ 0.26 $ 0.62 $ 1.58

NOTE 20 - SUBSEQUENT EVENTS

NOTE 20 - SUBSEQUENT EVENTS	12 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
NOTE 20 - SUBSEQUENT EVENTS	NOTE 20 – SUBSEQUENT EVENTS The Company evaluates events that have occurred after the balance sheet date, but before the consolidated financial statements are issued. Effective July 1, 2015, the Company restructured the corporate organization of the management of diagnostic imaging centers segment of our business. The reorganization was structured to more completely integrate the operations of Health Management Corporation of America and HDM. Imperial contributed all of its assets (which were utilized in the business of Health Management Corporation of America) to HDM and received a 24.2% interest in HDM. Health Management Corporation of America retained a direct ownership interest of 45.8% in HDM, and the original investors in HDM retained a 30.0% ownership interest in the newly expanded HDM. The entire management of diagnostic imaging centers business segment is now being conducted by HDM. During August 2015, the Company entered into a new lease for its principal office in Melville, New York. The lease commences on August 1, 2015 and expires on November 30, 2026.

NOTE 2 - SUMMARY OF SIGNIFICA28

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships. The operating activities of subsidiaries are included in the accompanying consolidated statements from the date of acquisition. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The most significant estimates relate to receivable allowances, intangible assets, income taxes and related tax asset valuation allowances, useful lives of property and equipment, contingencies, revenue recognition and the assessment of litigation. In addition, healthcare industry reforms and reimbursement practices will continue to impact the Company's operations and the determination of contractual and other allowance estimates. Actual results could differ from those estimates.
Inventories	Inventories Inventories consist of purchased parts, components and supplies, as well as work-in-process, and are stated at the lower of cost, determined on the first-in, first-out method, or market.
Property and Equipment	Property and Equipment Property and equipment procured in the normal course of business is stated at cost. Property and equipment purchased in connection with an acquisition is stated at its estimated fair value, generally based on an appraisal. Property and equipment is being depreciated for financial accounting purposes using the straight-line method over their estimated useful lives. Leasehold improvements are being amortized over the shorter of the useful life or the remaining lease term. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation of these assets are removed from the accounts and the resulting gains or losses are reflected in the results of operations. Expenditures for maintenance and repairs are charged to operations. Renewals and betterments are capitalized. Maintenance and repair expenses totaled approximately $1,200,000, $1,037,000 and $598,000 for the years ended June 30, 2015, 2014 and 2013, respectively. The estimated useful lives in years are generally as follows: Diagnostic equipment under capital lease 2.5 Diagnostic equipment 5–13 Research, development and demonstration equipment 3-7 Machinery and equipment 2-7 Furniture and fixtures 3-9 Leasehold improvements 2–10 Building 28
Long-Lived Assets	Long-Lived Assets The Company periodically assesses the recoverability of long-lived assets, including property and equipment and intangibles, other than goodwill, when there are indications of potential impairment, based on estimates of undiscounted future cash flows. The amount of impairment is calculated by comparing anticipated discounted future cash flows with the carrying value of the related asset. In performing this analysis, management considers such factors as current results, trends, and future prospects, in addition to other economic factors.
Deferred Rent	Deferred Rent Rent expense is recorded on the straight-line method based on the total minimum rent payments required over the term of the lease. The cumulative difference between the lease expense recorded under this method and the contractual lease payment terms is recorded as deferred rent.
Other Intangible Assets	Other Intangible Assets 1) Capitalized Software Development Costs Capitalization of software development costs begins upon the establishment of technological feasibility. Technological feasibility for the Company’s computer software is generally based upon achievement of a detail program design free of high risk development issues and the completion of research and development on the product hardware in which it is to be used. The establishment of technological feasibility and the ongoing assessment of recoverability of capitalized computer software development costs require considerable judgment by management with respect to certain external factors, including, but not limited to, technological feasibility, anticipated future gross revenue, estimated economic life and changes in software and hardware technology. Prior to reaching technological feasibility those costs are expensed as incurred and included in research and development. Amortization of capitalized software development costs commences when the related products become available for general release to customers. Amortization is provided on a product by product basis. The annual amortization is the greater of the amount computed using (a) the ratio that current gross revenue for a product bears to the total of current and anticipated future gross revenue for that product, or (b) the straight-line method over the remaining estimated economic life of the product. The Company periodically performs reviews of the recoverability of such capitalized software development costs. At the time a determination is made that capitalized amounts are not recoverable, based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. 2) Patents and Copyrights Amortization is calculated on the straight-line basis over a period ranging from 15 to 17 years. 3) Non-Competition Agreements The non-competition agreements are being amortized on the straight line basis over the length of the agreement (7 years). 4) Customer Relationships Amortization is calculated on the straight line basis over 20 years.
Goodwill	Goodwill Generally accepted accounting principles in the United States require the Company to perform a goodwill impairment test annually and more frequently when negative conditions or a triggering event arises. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered potentially impaired and a second step is performed to measure the amount of impairment loss, if any.
Acquired Assets and Assumed Liabilities	Acquired assets and assumed liabilities Pursuant to ASC No. 805-10-25, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, but during the allowed measurement period not to exceed one year from the acquisition date, the Company retrospectively adjusts the provisional amounts recognized at the acquisition date by means of adjusting the amount recognized for goodwill.
Revenue Recognition	Revenue Recognition Revenue on sales contracts for scanners, included in “product sales” in the accompanying consolidated statements of operations, is recognized under the percentage-of-completion method in accordance with FASB ASC 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts”. The Company manufactures its scanners under specific contracts that provide for progress payments. Production and installation take approximately three to six months. Revenue on scanner service contracts is recognized on the straight-line method over the related contract period, usually one year. Revenue from sales of other items is recognized upon shipment. Revenue under management contracts is recognized based upon contractual agreements for management services rendered by the Company primarily under various long-term agreements with various medical providers (the "PCs"). As of June 30, 2015, the Company has twenty management agreements of which three are with PC’s owned by Raymond V. Damadian, M.D., President and Chairman of the Board of FONAR (“the Related medical practices”) and seventeen are with PC’s, which are all located in the state of New York (“the New York PC’s”), owned by two unrelated radiologists. The contractual fees for services rendered to the PCs consists of fixed monthly fees per diagnostic imaging facility ranging from approximately $100,000 to $242,000. All fees are re-negotiable at the anniversary of the agreements and each year thereafter. Revenue under lease contracts is recognized based upon contractual agreements for the leasing of medical equipment primarily under long term contracts to various unrelated PC’s. The lease fee for the medical equipment consists of a fixed monthly fee of $2,000. All fees are re-negotiable at the anniversary of the agreements and each year thereafter. Patient fee revenue, net of contractual allowance and discounts, consist of net patient fees received from insurance companies, third party payors (including federal and state agencies under Medicare and Medicaid programs), hospitals and patients themselves based mainly upon established contractual billing rates, less allowances for contractual adjustments and discounts. Patient fee revenue is recorded in the period in which services are provided. The Company’s patient fee revenues, net of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2015, 2014 and 2013 are summarized in the following table. For the Year Ended June 30, 2015 2014 2013 Commercial Insurance/ Managed Care $ 4,398,589 $ 4,217,088 $ 1,360,536 Medicare/Medicaid 1,187,690 1,443,020 541,602 Workers' Compensation/Personal Injury 15,978,243 13,369,956 3,597,416 Other 6,589,076 5,277,128 1,982,311 Patient Fee Revenue, net of contractual allowances and discounts 28,153,598 24,307,192 7,481,865 Provision for Bad Debts (12,770,249 ) (10,333,082 ) (2,584,669 ) Net Patient Fee for Revenue $ 15,383,349 $ 13,974,110 $ 4,897,196
Allowance for Doubtful Accounts - Patient Fee	Allowance for Doubtful Accounts – Patient Fee The Company provides for medical receivables that could become uncollectible by establishing an allowance for doubtful accounts in order to adjust medical receivables to estimated net realizable value. In evaluating the collectability of medical receivables, the Company considers a number of factors, including the age of the account, historical collection experiences, payor type, current economic conditions and other relevant factors. There are various factors that impact collection trends, such as payor mix, changes in the economy, increase burden on copayments to be made by patients with insurance and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and the estimation process.
Research and Development Costs	Research and Development Costs Research and development costs are charged to expense as incurred. The costs of equipment that are acquired or constructed for research and development activities, and have alternative future uses (either in research and development, marketing or production), are classified as property and equipment and depreciated over their estimated useful lives.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. Advertising expense approximated $894,000, $889,000 and $835,000 for the years ended June 30, 2015, 2014 and 2013, respectively.
Shipping Costs	Shipping Costs The Company’s shipping and handling costs are included in revenue from product sales and the related expense included in costs related to product sales is $9,293, $1,885 and $5,838 for the years ended June 30, 2015, 2014 and 2013, respectively.
Income Taxes	Income Taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.
Customer Advances	Customer Advances Cash advances and progress payments received on sales orders are reflected as customer advances until such time as revenue recognition occurs.
Earnings Per Share	Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class Method”, the Company used the Two-Class method for calculating basic earnings per share and applied the if converted method in calculating diluted earnings per share for the years ended June 30, 2015, 2014 and 2013. 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 years ended June 30, 2015, 2014 and 2013, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. June 30, 2015 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 12,910,651 $ 12,071,670 $ 213,672 Denominator: Weighted average shares outstanding 6,050,632 6,050,632 382,513 Basic income per common share $ 2.13 $ 2.00 $ 0.56 Diluted Denominator: Weighted average shares outstanding 6,050,632 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,178,136 382,513 Diluted income per common share $ 1.95 $ 0.56 June 30, 2014 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 10,396,130 $ 9,720,030 $ 172,189 Denominator: Weighted average shares outstanding 6,009,822 6,009,822 382,513 Basic income per common share $ 1.73 $ 1.62 $ 0.45 Diluted Denominator: Weighted average shares outstanding 6,009,822 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,137,326 382,513 Diluted income per common share $ 1.58 $ 0.45 June 30, 2013 Basic Total Common Stock Class C Common Stock Numerator: Net income Available to common stockholders $ 8,678,542 $ 8,107,367 $ 145,467 Denominator: Weighted average shares outstanding 5,933,318 5,933,318 382,513 Basic income per common share $ 1.46 $ 1.37 $ 0.38 Diluted Denominator: Weighted average shares outstanding 5,933,318 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,060,822 382,513 Diluted income per common share $ 1.34 $ 0.38
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all short-term highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.
Concentration of Credit Risk	Concentration of Credit Risk Cash: The Company maintains its cash and cash equivalents with various financial institutions, which exceed federally insured limits throughout the year. At June 30, 2015, the Company had cash on deposit of approximately $7,038,000 in excess of federally insured limits of $250,000. Related Parties: Net revenues from related parties accounted for approximately 11%, 11% and 16% of the consolidated net revenues for the years ended June 30, 2015, 2014 and 2013, respectively. Net management fee receivables from the related party medical practices accounted for approximately 12%, 12% and 9% of the consolidated accounts receivable for the years ended June 30, 2015, 2014 and 2013, respectively. See Note 3 regarding the Company’s concentrations in the healthcare industry.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The financial statements include various estimated fair value information at June 30, 2015 and 2014, as required by ASC topic 820, "Disclosures about Fair Value of Financial Instruments". Such information, which pertains to the Company's financial instruments, is based on the requirements set forth in that Statement and does not purport to represent the aggregate net fair value to the Company. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and cash equivalents: The carrying amount approximates fair value because of the short-term maturity of those instruments. Receivable and accounts payable: The carrying amounts approximate fair value because of the short maturity of those instruments. Notes receivable: The carrying amount approximates fair value because the discounted present value of the cash flow generated by the parties approximates the carrying value of the amounts due to the Company. Long-term debt and notes payable: The carrying amounts of debt and notes payable approximate fair value due to the length of the maturities, the interest rates being tied to market indices and/or due to the interest rates not being significantly different from the current market rates available to the Company. All of the Company's financial instruments are held for purposes other than trading.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “ Simplifying the Measurement of Inventory FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2015 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 2015 or 2014, 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 reclassifications did not have any effect on reported net income for any periods presented.

NOTE 2 - SUMMARY OF SIGNIFICA29

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Estimated Useful Life in Years for Property and Equipment	The estimated useful lives in years are generally as follows: Diagnostic equipment under capital lease 2.5 Diagnostic equipment 5–13 Research, development and demonstration equipment 3-7 Machinery and equipment 2-7 Furniture and fixtures 3-9 Leasehold improvements 2–10 Building 28
Patient Fee Revenue - Net	The Company’s patient fee revenues, net of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2015, 2014 and 2013 are summarized in the following table. For the Year Ended June 30, 2015 2014 2013 Commercial Insurance/ Managed Care $ 4,398,589 $ 4,217,088 $ 1,360,536 Medicare/Medicaid 1,187,690 1,443,020 541,602 Workers' Compensation/Personal Injury 15,978,243 13,369,956 3,597,416 Other 6,589,076 5,277,128 1,982,311 Patient Fee Revenue, net of contractual allowances and discounts 28,153,598 24,307,192 7,481,865 Provision for Bad Debts (12,770,249 ) (10,333,082 ) (2,584,669 ) Net Patient Fee for Revenue $ 15,383,349 $ 13,974,110 $ 4,897,196
Earnings Per Share	Earnings Per Share June 30, 2015 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 12,910,651 $ 12,071,670 $ 213,672 Denominator: Weighted average shares outstanding 6,050,632 6,050,632 382,513 Basic income per common share $ 2.13 $ 2.00 $ 0.56 Diluted Denominator: Weighted average shares outstanding 6,050,632 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,178,136 382,513 Diluted income per common share $ 1.95 $ 0.56 June 30, 2014 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 10,396,130 $ 9,720,030 $ 172,189 Denominator: Weighted average shares outstanding 6,009,822 6,009,822 382,513 Basic income per common share $ 1.73 $ 1.62 $ 0.45 Diluted Denominator: Weighted average shares outstanding 6,009,822 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,137,326 382,513 Diluted income per common share $ 1.58 $ 0.45 June 30, 2013 Basic Total Common Stock Class C Common Stock Numerator: Net income Available to common stockholders $ 8,678,542 $ 8,107,367 $ 145,467 Denominator: Weighted average shares outstanding 5,933,318 5,933,318 382,513 Basic income per common share $ 1.46 $ 1.37 $ 0.38 Diluted Denominator: Weighted average shares outstanding 5,933,318 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,060,822 382,513 Diluted income per common share $ 1.34 $ 0.38

NOTE 3 - ACCOUNTS RECEIVABLE,30

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Tables)	12 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Total Facilities Owned or Managed	The following table sets forth the number of our facilities for the years ended June 30, 2015, 2014 and 2013. For The Year Ended June 30, 2015 2014 2013 Total Facilities Owned or Managed (at Beginning of Year) 24 24 11 Facilities Added by: Acquisition — — 14 Internal development — 1 — Managed Facilities Closed — (1 ) (1 ) Total Facilities Owned or Managed (at End of Year) 24 24 24

NOTE 4 - COSTS AND ESTIMATED 31

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables)	12 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Costs and Estimated Earnings on Uncompleted Contracts	Information relating to uncompleted contracts as of June 30, 2015 and 2014 is as follows: As of June 30, 2015 2014 Costs incurred on uncompleted contracts $ 1,861,350 $ 1,884,984 Estimated earnings 1,371,093 1,745,608 3,232,443 3,630,592 Less: Billings to date 2,693,000 3,013,000 $ 539,443 $ 617,592 Included in the accompanying consolidated balance sheets under the following captions: As of June 30, 2015 2014 Costs and estimated earnings in excess of billings on uncompleted contracts $ 681,660 $ 759,809 Less: Billings in excess of costs and estimated earnings on uncompleted contracts 142,217 142,217 $ 539,443 $ 617,592

NOTE 5 - INVENTORIES (Tables)

NOTE 5 - INVENTORIES (Tables)	12 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories included in the accompanying consolidated balance sheets consist of: As of June 30, 2015 2014 Purchased parts, components and supplies $ 2,043,411 $ 2,093,671 Work-in-process 148,438 349,865 $ 2,191,849 $ 2,443,536

NOTE 6 - PROPERTY AND EQUIPME33

NOTE 6 - PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment, at cost, less accumulated depreciation and amortization, at June 30, 2015 and 2014, is comprised of: As of June 30, 2015 2014 Diagnostic equipment under capital leases $ 620,307 $ 620,307 Diagnostic equipment 17,396,797 17,396,797 Research, development and demonstration equipment 3,580,224 3,510,224 Machinery and equipment 2,069,055 2,069,055 Furniture and fixtures 2,550,627 2,550,627 Leasehold improvements 4,502,915 5,593,148 Building 939,614 939,614 31,659,539 32,679,772 Less: Accumulated depreciation and amortization 18,758,344 17,650,043 $ 12,901,195 $ 15,029,729

NOTE 7 - OTHER INTANGIBLE ASS34

NOTE 7 - OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intagible Assets - Net	Other intangible assets, net of accumulated amortization, at June 30, 2015 and 2014 are comprised of: As of June 30, 2015 2014 Capitalized software development costs $ 7,004,847 $ 7,418,436 Patents and copyrights 4,547,545 4,408,011 Non-competition agreements 4,100,000 4,100,000 Customer relationships 3,800,000 3,800,000 19,452,392 19,726,447 Less: Accumulated amortization 10,502,232 9,217,604 $ 8,950,160 $ 10,508,843
Schedule Of Other Intangle Assets	Information related to the above intangible assets for the years ended June 30, 2015, 2014 and 2013 is as follows: As of June 30, 2015 2014 2013 Balance – Beginning of Year $ 10,508,843 $ 11,904,248 $ 3,835,179 Amounts capitalized 139,534 214,211 9,359,907 Abandon software or patents written off (413,589 ) (250,523 ) (66,619 ) Impairment of management agreement — — (357,500 ) Amortization (1,284,628 ) (1,359,093 ) (866,719 ) Balance – End of Year $ 8,950,160 $ 10,508,843 $ 11,904,248
Amortization of Other Intangible Assets	The estimated amortization of other intangible assets for the five years ending June 30, 2020 and thereafter is as follows: For the Years Ending June 30, Total Patents and Copyrights Capitalized Software Development Costs Non- Customer Relation-ships 2016 $ 1,262,929 $ 195,404 $ 291,811 $ 585,714 $ 190,000 2017 1,246,672 210,958 260,000 585,714 190,000 2018 1,169,983 220,936 173,333 585,714 190,000 2019 1,002,736 227,022 — 585,714 190,000 2020 797,458 216,981 — 390,477 190,000 Thereafter 3,470,382 1,063,715 — — 2,406,667 $ 8,950,160 $ 2,135,016 $ 725,144 $ 2,733,333 $ 3,356,667

NOTE 8 - CAPITAL STOCK (Tables)

NOTE 8 - CAPITAL STOCK (Tables)	12 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Stock Option Activity and Weighted Average Exercise Prices under Fonar Incentive Stock Option Plans	Stock option activity and weighted average exercise prices under these plans and grants for the year ended June 30, 2015, 2014 and 2013 was as follows: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, June 30, 2012 14,022 27.76 — Granted — — — Exercised — — — Forfeited / Expired (7,412 ) 26.65 Outstanding, June 30, 2013 6,610 29.00 — Granted — — — Exercised — — — Forfeited / Expired (6,610 ) 29.00 — Outstanding, June 30, 2014 — — — Outstanding, June 30, 2015 — — — Exercisable at: June 30, 2013 6,610 $ 29.00 June 30, 2014 — $ — June 30, 2015 — $ —

NOTE 9 - CONTROLLING AND NONC36

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS (Tables)	12 Months Ended
	Jun. 30, 2015
Noncontrolling Interest [Abstract]
Estimated Fair Value of Assets and Liabilities Assumed at Acquisition Date of Health Diagnostics Management (HDM)	The following table summarizes the estimated fair values of the assets and liabilities assumed at the acquisition date: Management fee receivable $ 6,667,259 Medical receivables 7,389,953 Prepaid expenses and other current assets 10,262 Property and equipment 14,912,650 Intangible assets 9,200,000 Goodwill 1,767,098 Other assets 332,949 Other current liabilities (6,323 ) Long term debt (273,848 ) Net assets acquired $ 40,000,000
Fair Value of Intangible Assets, Acquired in Acquisition, Excluding Goodwill	The intangible assets, excluding goodwill, are being amortized on a straight-line basis over their weighted average lives as follows: Fair Value Non compete $ 4,100,000 7 years Customer relationships 3,800,000 20 years Developed software 1,300,000 5 years Total intangible assets $ 9,200,000
Unaudited Pro Forma Results of Operations	The following unaudited pro forma results of operations for the twelve months ended June 30, 2013 assumes that the above acquisitions were made at the beginning of the year of acquisition. The unaudited pro forma information does not purport to be indicative of the results that would have been obtained if the acquisitions had actually occurred at the beginning of the year prior to acquisition, nor of the results that may be reported in the future. Year ended June 30, 2013 Total Revenues – Net 69,723,542 Net Income - Controlling Interests 17,442,337 Net Income Available to Common Stockholders 16,294,377 Net Income Available to Class A Non-Voting Preferred Stockholders 855,597 Net Income Available to Class C Common Stockholders 292,363 Basic Net Income Per Common Share Available to Common Stockholders 2.75 Diluted Net Income Per Common Share Available to Common Stockholders 2.69 Basic and Diluted Income Per Share - Common C 0.76 Weighted Average Basic Shares Outstanding 5,933,318 Weighted Average Diluted Shares Outstanding 6,060,822 Weighted Average Basic and Diluted Shares Outstanding - Class C Common 382,513
Class A And B Members' Equity (HDM Acquisition)	On January 8, 2015, the Company purchased 20% of the Class A members ownership interest at a cost of $4,971,094. The Company has a 60.4% ownership interest in HDM after this transaction. Amount of each class of HDM members’ equity as of June 30, 2015, 2014 and 2013 June 30, 2015 June 30, 2014 June 30, 2013 Class A Members Class B Member Class A Members Class B Member Class A Members Class B Member Opening Members’ Equity $ 17,659,698 $ 21,113,266 $ 19,526,475 $ 20,763,830 $ — $ — Share of Net Income 1,988,915 5,704,999 2,266,473 4,566,186 543,225 1,397,080 Contributions — — — — 19,800,000 20,200,000 Buyout (4,971,094 ) — — — — — Distributions (3,925,350 ) (4,774,644 ) (4,133,250 ) (4,216,750 ) (816,750 ) (833,250 ) Ending Members’ Equity $ 10,752,169 $ 22,043,621 $ 17,659,698 $ 21,113,266 $ 19,526,475 $ 20,763,830
Class A And B Members' Equity (Imperial Management Services)	On May 2, 2011, the Company completed a private placement of equity and succeeded in raising $6,000,000. Amount of each class of Imperial Management Services, LLC members’ equity as of June 30, 2015, 2014 and 2013 June 30, 2015 June 30, 2014 June 30, 2013 Class A Members Class B Member Class A Members Class B Member Class A Members Class B Member Opening Members’ Equity $ 2,403,812 $ 11,079,317 $ 3,599,519 $ 7,772,781 $ 4,918,365 $3,824,945 Share of Net Income 405,634 3,921,129 536,913 3,306,536 959,254 3,947,836 Contributions — — — — — — Distributions (405,000 ) — (607,520 ) — (853,200 ) — Redemption (1,125,000 ) — (1,125,100 ) — (1,424,900 ) — Ending Members’ Equity $ 1,279,446 $ 15,000,446 $ 2,403,812 $ 11,079,317 $ 3,599,519 $7,772,781

NOTE 10 - LONG-TERM DEBT, NOT37

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES (Tables)	12 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Long-Term Debt, Notes Payable And Capital Leases	Long-term debt, notes payable and capital leases consist of the following: 2015 2014 Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $618,337 as of June 30, 2015. $ 416,844 $ 439,983 The revolving credit note is due by March 5, 2016. The Company can prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis. The note was paid in full September 2, 2014. The Company still has the ability to draw down on the line. — 300,000 The term loan is payable with interest only for 6 consecutive months commencing at the inception of the loan followed by 60 consecutive monthly installments, commencing October 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis. 7,149,986 9,349,994 Note payable requiring 12 consecutive interest only payments commencing at the inception of the loan followed by 48 consecutive monthly payments, commencing May 1, 2014. The note bears interest at a rate of 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis. 488,499 660,911 Other (including capital leases for property and equipment). 134,119 621,758 8,189,448 11,372,646 Less: Current portion 2,490,146 2,890,816 $ 5,699,302 $ 8,481,830
Maturities Of Long-Term Debt	The maturities of long-term debt over the next five years and thereafter are as follows: Years Ending June 30, 2016 $ 2,490,146 2017 2,440,108 2018 2,372,514 2019 580,708 2020 32,944 Thereafter 273,028 $ 8,189,448

NOTE 11 - INCOME TAXES (Tables)

NOTE 11 - INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Components Of Current (Benefit) Provision For Income Taxes	Components of the current benefit for income taxes are as follows: Years Ended June 30, 2015 2014 2013 Current: Federal $ 114,683 $ 310,000 $ 125,000 State 29,313 24,093 71,001 Federal deferred taxes (2,353,124 ) (2,280,044 ) (2,336,454 ) State deferred taxes (403,393 ) (402,361 ) (137,438 ) $ (2,612,521 ) $ (2,348,312 ) $ (2,277,891 )
Reconciliation Of Federal Statutory Income Tax Rate To Company's Effective Tax Rate	A reconciliation of the federal statutory income tax rate to the Company's effective tax rate as reported is as follows: Years Ended June 30, 2015 2014 2013 Taxes at federal statutory rate 35.0 % 34.0 % 34.0 % State and local income taxes (benefit), net of federal benefit 6.0 % 6.0 % 6.0 % Permanent differences 0.2 % (0.9 )% 0.6 % (Decrease) increase in the valuation allowance (65.4 )% (65.5 )% (73.2 )% True ups (3.2 )% (2.8 )% (3.0 )% Effective income tax rate (27.4 )% (29.2 )% (35.6 )%
Components Of Company's Deferred Tax Assets And Liabilities	Significant components of the Company's deferred tax assets and liabilities at June 30, 2015 and 2014 are as follows: June 30, 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 6,607,107 $ 6,961,016 Non-deductible accruals 115,346 65,108 Net operating carryforwards 49,170,420 54,900,136 Tax credits 6,751,692 5,644,097 Property and equipment and depreciation 111,190 195,408 Inventory 1,093,401 130,822 63,849,156 67,896,587 Valuation allowance (55,425,850 ) (62,156,300 ) Total deferred tax assets 8,423,306 5,740,287 Capitalized software development costs (510,492 ) (583,990 ) Total deferred tax liabilities (510,492 ) (583,990 ) Net deferred tax asset $ 7,912,814 $ 5,156,297

NOTE 12 - OTHER CURRENT LIABI39

NOTE 12 - OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Jun. 30, 2015
Payables and Accruals [Abstract]
Other Current Liabilities	Included in other current liabilities are the following: June 30, 2015 2014 Accrued salaries, commissions and payroll taxes $ 991,603 $ 834,324 Accrued interest 117,480 117,480 Litigation accruals 521,149 664,349 Sales tax payable 2,538,340 2,665,181 Legal and other professional fees 344,060 438,730 Accounting fees 235,000 325,139 Purchase scanners — 450,000 Self-funded health insurance reserve 510,150 298,004 Interest and penalty – sales tax 2,508,840 2,374,339 Other 486,011 582,740 $ 8,252,633 $ 8,750,286

NOTE 13 - COMMITMENTS AND CON40

NOTE 13 - COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Future Minimums Operating Lease Commitments	Future minimum operating lease commitments consisted of the following at June 30, 2015: Year Ending Facilities And Equipment 2016 $ 3,717,939 2017 3,191,082 2018 2,722,882 2019 2,129,428 2020 1,866,277 Thereafter 8,094,188 Total minimum obligations $ 21,721,796 *Includes new lease for the Company’s principal office in Melville, see subsequent events Note 20.

NOTE 14 - OTHER INCOME (EXPEN41

NOTE 14 - OTHER INCOME (EXPENSE) (Tables)	12 Months Ended
	Jun. 30, 2015
Other Income and Expenses [Abstract]
Other Income (Expense) - Net	Other income (expense) consists of: For the Years Ended June 30, 2015 2014 2013 Loss on disposition of equipment $ — $ (657,350 ) $ — Loss from investment — — (48,777 ) Litigation settlement — 13,586 716,250 Gain on extinguishment of debt 394,797 — — Impairment of management agreement — — (357,500 ) Gain on sale of equipment — 40,000 557,473 Other income (expense) 13 (4,835 ) (141,958 ) $ 394,810 $ (608,599 ) $ 725,488

NOTE 17 - SEGMENT AND RELATED42

NOTE 17 - SEGMENT AND RELATED INFORMATION (Tables)	12 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Summarized Segment Financial Information	Summarized financial information concerning the Company’s reportable segments is shown in the following table: Manufacturing and Servicing of Medical Equipment Management of Diagnostic Imaging Centers Totals Fiscal 2015: Net revenues from external customers $ 11,480,295 $ 57,570,701 $ 69,050,996 Intersegment net revenues * $ 2,005,000 $ — $ 2,005,000 Income from operations $ 504,895 $ 12,394,982 $ 12,899,877 Depreciation and amortization $ 306,183 $ 3,238,287 $ 3,544,470 Compensatory element of stock issuances $ 53,200 $ — $ 53,200 Total identifiable assets $ 18,997,142 $ 57,494,935 $ 76,492,077 Capital expenditures $ 209,534 $ 61,308 $ 270,842 Fiscal 2014: Net revenues from external customers $ 12,070,563 $ 56,434,914 $ 68,505,477 Intersegment net revenues * $ 1,963,750 $ — $ 1,963,750 Income from operations $ 468,793 $ 11,833,876 $ 12,302,669 Depreciation and amortization $ 410,728 $ 3,406,477 $ 3,817,205 Compensatory element of stock issuances $ 223,000 $ — $ 223,000 Total identifiable assets $ 18,093,789 $ 58,696,054 $ 76,789,843 Capital expenditures $ 234,275 $ 600,633 $ 834,908 Fiscal 2013: Net revenues from external customers $ 14,891,075 $ 34,250,739 $ 49,141,814 Intersegment net revenues * $ 1,200,000 $ — $ 1,200,000 Income from operations $ 139,390 $ 7,396,357 $ 7,535,747 Depreciation and amortization $ 541,551 $ 1,879,626 $ 2,421,177 Compensatory element of stock issuances $ 415,021 $ — $ 415,021 Total identifiable assets $ 15,071,225 $ 58,079,425 $ 73,150,650 Capital expenditures $ 237,636 $ 25,170,303 $ 25,407,939 * Amounts eliminated in consolidation
Export Product Sales	The foreign product sales, as a percentage of product sales to unrelated parties, were made to customers in the following countries: For the Years Ended June 30, 2015 2014 2013 United Arab Emirates -% 29.8 % -% Switzerland 2.2 12.4 — Canada 0.1 — — England — — 3.6 Germany 71.9 — 0.1 Libya — 0.2 0.1 74.2 % 42.4 % 3.8 %
Foreign Service and Repair Fees	The foreign service and repair fees, as a percentage of total service and repair fees, were provided principally to the following countries: For the Years Ended June 30, 2015 2014 2013 Spain 1.0 % 1.0 % 0.9 % Puerto Rico 1.2 1.1 1.0 Switzerland 0.7 1.1 1.1 Germany 0.7 0.4 — England 1.7 2.6 2.0 Holland 0.6 1.3 2.2 Canada 0.1 0.2 — Greece 0.2 — — Australia 1.2 1.1 1.0 7.4 % 8.8 % 8.2 %

NOTE 18 - ALLOWANCE FOR DOUBT43

NOTE 18 - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables)	12 Months Ended
	Jun. 30, 2015
Valuation and Qualifying Accounts [Abstract]
Summary of Allowance For Doubtful Accounts	The following represents a summary of allowance for doubtful accounts for the years ended June 30, 2015, 2014 and 2013, respectively: Description Balance June 30, 2014 Additions Deductions Balance June 30, 2015 Accounts receivable $ 257,362 (1) $ 105,000 $ — $ 362,362 Management and other fees receivable 10,901,619 (1) 2,370,032 — 13,271,651 Management and other fees receivable - related medical practices 403,047 — — 403,047 Medical receivables 14,032,067 (1) 12,770,249 11,343,160 15,459,156 Advance and notes to related parties 202,379 — 202,379 — Description Balance June 30, 2013 Additions Deductions Balance June 30, 2014 Accounts receivables $ 257,362 (1) $ — $ — $ 257,362 Management and other fees receivable 9,095,320 (1) 1,806,299 — 10,901,619 Management and other fees receivable - related medical practices 403,047 — — 403,047 Medical receivables 2,584,669 (1) 10,333,082 (1,114,316 ) 14,032,067 Advance and notes to related parties 202,379 — — 202,379 Description Balance June 30, 2012 Additions Deductions Balance June 30, 2013 Accounts receivables $ 1,852,987 (1) (92,454 ) $ 1,503,171 $ 257,362 Management and other fees receivable 7,458,345 (1) 1,636,975 — 9,095,320 Management and other fees receivable - related medical practices 403,047 — — 403,047 Medical receivables — (1) 2,584,669 2,584,669 Advance and notes to related parties 239,791 — 37,412 202,379 Notes receivable 65,000 — 65,000 — (1) Included in provision for bad debts.

NOTE 19 - QUARTERLY FINANCIAL44

NOTE 19 - QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Quarterly Financial Data	Quarterly Financial Data (Unaudited) (000’s omitted, except per share data) September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 Total Total Revenues – Net $ 17,985 $ 17,092 $ 17,096 $ 16,878 $ 69,051 Total Costs and Expenses 14,547 13,494 14,430 13,680 56,151 Net Income 3,256 3,455 2,519 6,200 15,430 Basic Net Income Per Common Share Available to Common Stockholders $ 0.39 $ 0.41 $ 0.31 $ 0.89 $ 2.00 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.39 $ 0.40 $ 0.31 $ 0.86 $ 1.95 September 30, 2013 December 31, 2013 March 31, 2014 June 30, 2014 Total Total Revenues – Net $ 16,831 $ 17,609 $ 17,040 $ 17,025 $ 68,505 Total Costs and Expenses 12,778 14,314 14,721 14,390 56,203 Net Income 3,620 3,048 2,147 4,582 13,397 Basic Net Income Per Common Share Available to Common Stockholders $ 0.38 $ 0.33 $ 0.27 $ 0.64 $ 1.62 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.37 $ 0.33 $ 0.26 $ 0.62 $ 1.58

NOTE 2 - SUMMARY OF SIGNIFICA45

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful Life in Years - (Details)	12 Months Ended
	Jun. 30, 2015
Diagnostic Equipment Under Capital Lease | Weighted Average
Property, Plant and Equipment	2 years 6 months
Diagnostic Equipment | Minimum
Property, Plant and Equipment	5 years
Diagnostic Equipment | Maximum
Property, Plant and Equipment	13 years
Research, development, and demonstration equipment | Minimum
Property, Plant and Equipment	3 years
Research, development, and demonstration equipment | Maximum
Property, Plant and Equipment	7 years
Machinery and Equipment | Minimum
Property, Plant and Equipment	2 years
Machinery and Equipment | Maximum
Property, Plant and Equipment	7 years
Furniture and Fixtures | Minimum
Property, Plant and Equipment	3 years
Furniture and Fixtures | Maximum
Property, Plant and Equipment	9 years
Leasehold Improvements | Minimum
Property, Plant and Equipment	2 years
Leasehold Improvements | Maximum
Property, Plant and Equipment	10 years
Building | Weighted Average
Property, Plant and Equipment	28 years

NOTE 2 - SUMMARY OF SIGNIFICA46

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Patient Fee Revenue Recognition - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Patient fee revenue, net of contractual allowances and discounts	$ 28,153,598	$ 24,307,192	$ 7,481,865
Patient fee revenue provision for bad debts	12,770,249	10,333,082	2,584,669
Net patient fee revenue	15,383,349	13,974,110	4,897,196
Commercial Insurance / Managed Care
Patient fee revenue, net of contractual allowances and discounts	4,398,589	4,217,088	1,360,536
Medicare/Medicaid
Patient fee revenue, net of contractual allowances and discounts	1,187,690	1,443,020	541,602
Workers Compensation/Personal Injury
Patient fee revenue, net of contractual allowances and discounts	15,978,243	13,369,956	3,597,416
Other
Patient fee revenue, net of contractual allowances and discounts	$ 6,589,076	$ 5,277,128	$ 1,982,311

NOTE 2 - SUMMARY OF SIGNIFICA47

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share - (Details) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Basic Numerator: Net income available to common stockholders									$ 12,910,651	$ 10,396,130	$ 8,678,542
Basic Denominator: Weighted average shares outstanding									6,050,632	6,009,822	5,933,318
Basic Income Per Common Share	$ 0.89	$ 0.31	$ 0.41	$ 0.39	$ 0.64	$ 0.27	$ 0.33	$ 0.38	$ 2.13	$ 1.73	$ 1.46
Diluted Income Per Common Share	$ 0.86	$ 0.31	$ 0.40	$ 0.39	$ 0.62	$ 0.26	$ 0.33	$ 0.37
Common Stock
Basic Numerator: Net income available to common stockholders									$ 12,071,670	$ 9,720,030	$ 8,107,367
Basic Denominator: Weighted average shares outstanding									6,050,632	6,009,822	5,933,318
Basic Income Per Common Share									$ 2	$ 1.62	$ 1.37
Class C Common Stock									127,504	127,504	127,504
Total Denominator for diluted earnings per share									6,178,136	6,137,326	6,060,822
Diluted Income Per Common Share									$ 1.95	$ 1.58	$ 1.34
Class C Common Stock
Basic Numerator: Net income available to common stockholders									$ 213,672	$ 172,189	$ 145,467
Basic Denominator: Weighted average shares outstanding									382,513	382,513	382,513
Basic Income Per Common Share									$ 0.56	$ 0.45	$ 0.38
Class C Common Stock
Total Denominator for diluted earnings per share									382,513	382,513	382,513
Diluted Income Per Common Share									$ 0.56	$ 0.45	$ 0.38

NOTE 3 - ACCOUNTS RECEIVABLE,48

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE-Total Facilities (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Note 3 - Accounts Receivable Medical Receivable And Management And Other Fees Receivable-total Facilities Details
Total Facilities Owned or Managed (at Beginning of Year)	24	24	11
Managed Facilities Added Acquisition	0	0	14
Managed Facilities Added By Internal development	0	1	0
Managed Facilities Closed During year	0	1	1
Total Facilities Owned or Managed (at End of Year)	24	24	24

NOTE 4 - COSTS AND ESTIMATED 49

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS - Costs, Earnings, Billings, Uncompleted Contracts - (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Notes to Financial Statements
Costs incurred on uncompleted contracts	$ 1,861,350	$ 1,884,984
Estimated earnings	1,371,093	1,745,608
Less: billings to date	2,693,000	3,013,000
Unbilled contracts receivable	$ 539,443	$ 617,592

NOTE 4 - COSTS AND ESTIMATED 50

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS - Costs, Billings and Uncompleted Contracts (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Notes to Financial Statements
Costs and estimated earnings in excess of billings on uncompleted contracts	$ 681,660	$ 759,809
Less: Billings in excess of costs and estimated earnings on uncompleted contracts	142,217	142,217
Unbilled contracts receivable	$ 539,443	$ 617,592

NOTE 5 - INVENTORIES - Inventor

NOTE 5 - INVENTORIES - Inventories (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Inventory Disclosure [Abstract]
Purchased parts, components and supplies	$ 2,043,411	$ 2,093,671
Work-in-process	148,438	349,865
Inventories	$ 2,191,849	$ 2,443,536

NOTE 6 - PROPERTY AND EQUIPME52

NOTE 6 - PROPERTY AND EQUIPMENT - Property and Equipment (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Property, Plant and Equipment [Abstract]
Diagnostic equipment under capital leases	$ 620,307	$ 620,307
Diagnostic equipment	17,396,797	17,396,797
Research, development and demonstration equipment	3,580,224	3,510,224
Machinery and equipment	2,069,055	2,069,055
Furniture and fixtures	2,550,627	2,550,627
Leasehold improvements	4,502,915	5,593,148
Building	939,614	939,614
Property and Equipment Subtotal Before Accumulated depreciation and amortization	31,659,539	32,679,772
Less: Accumulated depreciation and amortization	18,758,344	17,650,043
Property and Equipment Total AfterAccumulated depreciation and amortization	$ 12,901,195	$ 15,029,729

NOTE 7 - OTHER INTANGIBLE ASS53

NOTE 7 - OTHER INTANGIBLE ASSETS - Other Intagible Assets Net of Amoritization (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software development costs	$ 7,004,847	$ 7,418,436
Patents and copyrights	4,547,545	4,408,011
Non-competition agreements	4,100,000	4,100,000
Customer Relationships	3,800,000	3,800,000
Less: Accumulated amortization	10,502,232	9,217,604
Other Intangible Assets - Net	$ 8,950,160	$ 10,508,843

NOTE 7 - OTHER INTANGIBLE ASS54

NOTE 7 - OTHER INTANGIBLE ASSETS - Schedule Of Intangle Assets - (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Balance - Beginning of Year	$ 10,508,843	$ 11,904,248	$ 3,835,179
Amounts capitalized	139,534	214,211	9,359,907
Abandon software or patents written off	$ (413,589)	$ (250,523)	(66,619)
Impairment of Management Agreement			(357,500)
Amortization	$ (1,284,628)	$ (1,359,093)	(866,719)
Balance - End of Year	$ 8,950,160	$ 10,508,843	$ 11,904,248

NOTE 7 - OTHER INTANGIBLE ASS55

NOTE 7 - OTHER INTANGIBLE ASSETS - Forward Looking Schedule of Other Intangible Assets - (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
2,016	$ 1,262,929
2,017	1,246,672
2,018	1,169,983
2,019	1,002,736
2,020	797,458
Thereafter	3,470,382
Other Intangible Assets - Net	8,950,160	$ 10,508,843
Patents and Copyrights
2,016	195,404
2,017	210,958
2,018	220,936
2,019	227,022
2,020	216,981
Thereafter	1,063,715
Other Intangible Assets - Net	2,135,016
Capitalized software development costs
2,016	291,811
2,017	260,000
2,018	$ 173,333
2,019
2,020
Thereafter
Other Intangible Assets - Net	$ 725,144
Non-competition agreements
2,016	585,714
2,017	585,714
2,018	585,714
2,019	585,714
2,020	$ 390,477
Thereafter
Other Intangible Assets - Net	$ 2,733,333
Customer Relationships
2,016	190,000
2,017	190,000
2,018	190,000
2,019	190,000
2,020	190,000
Thereafter	2,406,667
Other Intangible Assets - Net	$ 3,356,667

NOTE 8 - CAPITAL STOCK - Stock

NOTE 8 - CAPITAL STOCK - Stock Option Activity - (Details) - $ / shares	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Number of Options
Options Outstanding, beginning balance		6,610	14,022
Shares Granted
Shares Exercised
Shares Expired		6,610	(7,412)
Options Outstanding, ending balance			6,610
Weighted Average Exercise Price
Options Outstanding, beginning balance		$ 29	$ 27.76
Shares Granted
Forfeited / Expired			26.65
Options Outstanding, ending balance			$ 29
Aggregate Intrinsic Value
Outstanding, beginning balance
Granted
Exercised

NOTE 9 - CONTROLLING AND NONC57

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - Net Assets Acquired (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014	Mar. 05, 2014	Mar. 05, 2013
Prepaid expenses and other current assets	$ 860,040	$ 1,011,358
Property and equipment - Net	12,901,195	15,029,729
Goodwill	1,767,098	1,767,098
Other assets	829,505	922,096
Other current liabilities	$ 8,252,633	$ 8,750,286
Health Diagnostics Management LLC (HDM)
Prepaid expenses and other current assets				$ 10,262
Property and equipment - Net				14,912,650
Intangible assets				9,200,000
Goodwill				1,767,098
Other assets				332,949
Other current liabilities				(6,323)
Long term debt				(273,848)
Net assets acquired				40,000,000
Health Diagnostics Management LLC (HDM) | Management fee receivable
Fee receivable				$ 6,667,259
Health Diagnostics Management LLC (HDM) | Medical receivables
Fee receivable			$ 7,389,953

NOTE 9 - CONTROLLING AND NONC58

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - Total Intangible Assets (Details)	12 Months Ended
	Jun. 30, 2015USD ($)
Fair Value	$ 9,200,000
Non-competition agreements
Fair Value	$ 4,100,000
Estimated Useful Life	7 years
Customer Relationships
Fair Value	$ 3,800,000
Estimated Useful Life	20 years
Developed Software
Fair Value	$ 1,300,000
Estimated Useful Life	5 years

NOTE 9 - CONTROLLING AND NONC59

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - Unaudited Proforma Results of Operations (Details) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Total Revenues - Net	$ 16,878,000	$ 17,096,000	$ 17,092,000	$ 17,985,000	$ 17,025,000	$ 17,040,000	$ 17,609,000	$ 16,831,000	$ 69,050,996	$ 68,505,477	$ 49,141,814
Net Income - Controlling Interests									$ 12,910,651	$ 10,396,130	$ 8,678,542
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.89	$ 0.31	$ 0.41	$ 0.39	$ 0.64	$ 0.27	$ 0.33	$ 0.38	$ 2.13	$ 1.73	$ 1.46
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.86	$ 0.31	$ 0.40	$ 0.39	$ 0.62	$ 0.26	$ 0.33	$ 0.37
Weighted Average Basic Shares Outstanding									6,050,632	6,009,822	5,933,318
Common Stock
Net Income - Controlling Interests									$ 12,071,670	$ 9,720,030	$ 8,107,367
Basic Net Income Per Common Share Available to Common Stockholders									$ 2	$ 1.62	$ 1.37
Diluted Net Income Per Common Share Available to Common Stockholders									$ 1.95	$ 1.58	$ 1.34
Weighted Average Basic Shares Outstanding									6,050,632	6,009,822	5,933,318
Weighted Average Diluted Shares Outstanding									6,178,136	6,137,326	6,060,822
Class C Common Stock
Net Income - Controlling Interests									$ 213,672	$ 172,189	$ 145,467
Basic Net Income Per Common Share Available to Common Stockholders									$ 0.56	$ 0.45	$ 0.38
Diluted Net Income Per Common Share Available to Common Stockholders									$ 0.56	$ 0.45	$ 0.38
Weighted Average Basic Shares Outstanding									382,513	382,513	382,513
Weighted Average Diluted Shares Outstanding									382,513	382,513	382,513
Health Diagnostics Management LLC (HDM)
Total Revenues - Net											$ 69,723,542
Net Income - Controlling Interests											$ 17,442,337
Weighted Average Basic Shares Outstanding											5,933,318
Weighted Average Diluted Shares Outstanding											6,060,822
Health Diagnostics Management LLC (HDM) | Common Stock
Net Income Available to Stockholders											$ 16,294,377
Basic Net Income Per Common Share Available to Common Stockholders											$ 2.75
Diluted Net Income Per Common Share Available to Common Stockholders											$ 2.69
Health Diagnostics Management LLC (HDM) | Class A Non-Voting Preferred
Net Income Available to Stockholders											$ 855,597
Health Diagnostics Management LLC (HDM) | Class C Common Stock
Net Income Available to Stockholders											$ 292,363
Basic Net Income Per Common Share Available to Common Stockholders											$ 0.76
Diluted Net Income Per Common Share Available to Common Stockholders											$ 0.76
Weighted Average Basic Shares Outstanding											382,513
Weighted Average Diluted Shares Outstanding											382,513

NOTE 9 - CONTROLLING AND NONC60

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - HDM Members Equity (Details) - HDM Equity - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Class A Members
Opening Members Equity	$ 17,659,698	$ 19,526,475
Share of Net Income	$ 1,988,915	$ 2,266,473	$ 543,225
Contributions			$ 19,800,000
Buyout	$ (4,971,094)
Distributions	(3,925,350)	$ (4,133,250)	$ (816,750)
Ending Members Equity	10,752,169	17,659,698	$ 19,526,475
Class B Members
Opening Members Equity	21,113,266	20,763,830
Share of Net Income	$ 5,704,999	$ 4,566,186	$ 1,397,080
Contributions			$ 20,200,000
Buyout
Distributions	$ (4,774,644)	$ (4,216,750)	$ (833,250)
Ending Members Equity	$ 22,043,621	$ 21,113,266	$ 20,763,830

NOTE 9 - CONTROLLING AND NONC61

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - Imperial Members Equity (Details) - Imperial Equity - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Class A Members
Opening Members Equity	$ 2,403,812	$ 3,599,519	$ 4,918,365
Share of Net Income	$ 405,634	$ 536,913	$ 959,254
Contributions
Distributions	$ (405,000)	$ (607,520)	$ (853,200)
Redemption	(1,125,000)	(1,125,100)	(1,424,900)
Ending Members Equity	1,279,446	2,403,812	3,599,519
Class B Members
Opening Members Equity	11,079,317	7,772,781	3,824,945
Share of Net Income	$ 3,921,129	$ 3,306,536	$ 3,947,836
Contributions
Distributions
Redemption
Ending Members Equity	$ 15,000,446	$ 11,079,317	$ 7,772,781

NOTE 10 - LONG-TERM DEBT, NOT62

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES Long-Term Debt, Notes Payable And Capital Leases - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Current portion of Long Term Debt, Notes Payable and Capital Leases	$ 2,490,146	$ 2,890,816
Long Term Debt, Notes Payable and Capital Leases less Current Portion	5,699,302	8,481,830
Long Term Note 1
Long Term Debt, Notes Payable and Capital Leases	$ 416,844	439,983
Long Term Debt, Notes Payable and Capital Leases Description	Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $618,337 as of June 30, 2015.
Long Term Note 2
Long Term Debt, Notes Payable and Capital Leases	$ 0	300,000
Long Term Debt, Notes Payable and Capital Leases Description	The revolving credit note is due by March 5, 2016. The Company can prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis. The note was paid in full September 2, 2014. The Company still has the ability to draw down on the line.
Long Term Note 3
Long Term Debt, Notes Payable and Capital Leases	$ 7,149,986	9,349,994
Long Term Debt, Notes Payable and Capital Leases Description	The term loan is payable with interest only for 6 consecutive months commencing at the inception of the loan followed by 60 consecutive monthly installments, commencing October 1, 2013. The term loan bears interest at 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.
Long Term Note 4
Long Term Debt, Notes Payable and Capital Leases	$ 488,499	660,911
Long Term Debt, Notes Payable and Capital Leases Description	Note payable requiring 12 consecutive interest only payments commencing at the inception of the loan followed by 48 consecutive monthly payments, commencing May 1, 2014. The note bears interest at a rate of 4.75% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis.
Long Term Note 5
Long Term Debt, Notes Payable and Capital Leases	$ 134,119	$ 621,758
Long Term Debt, Notes Payable and Capital Leases Description	Other (including capital leases for property and equipment).

NOTE 10 - LONG-TERM DEBT, NOT63

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE & CAPITAL LEASES - Maturities Of Long-Term Debt Over 5 Years - (Details)	Jun. 30, 2015USD ($)
Debt Disclosure [Abstract]
2,016	$ 2,490,146
2,017	2,440,108
2,018	2,372,514
2,019	580,708
2,020	32,944
Thereafter	273,028
Long-Term Debt Over Five Years and Thereafter	$ 8,189,448

NOTE 11 - INCOME TAXES - Compon

NOTE 11 - INCOME TAXES - Components Of Current Benefit For Income Taxes - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Income Tax Disclosure [Abstract]
Current: Federal	$ 114,683	$ 310,000	$ 125,000
Current: State	29,313	24,093	71,001
Federal deferred taxes	(2,353,124)	(2,280,044)	(2,336,454)
State deferred taxes	(403,393)	(402,361)	(137,438)
Benefit for Income Taxes	$ (2,612,521)	$ (2,348,312)	$ (2,277,891)

NOTE 11 - INCOME TAXES - Income

NOTE 11 - INCOME TAXES - Income Tax Rate Reconciliation (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Note 11 - Income Taxes - Income Tax Rate Reconciliation Details
Taxes at federal statutory rate	3500.00%	3400.00%	3400.00%
State and local income taxes (benefit), net of federal benefit	600.00%	600.00%	600.00%
Permanent differences (taxes)	20.00%	(90.00%)	60.00%
(Decrease) increase in the valuation allowance	(6540.00%)	(6550.00%)	(7620.00%)
True ups	(320.00%)	(280.00%)
Effective income tax rate	(2740.00%)	(2920.00%)	(3560.00%)

NOTE 11 - INCOME TAXES - Signif

NOTE 11 - INCOME TAXES - Significant Components Of Company's Deferred Tax Assets And Liabilities - (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Deferred Tax Assets:
Allowance for doubtful accounts	$ 6,607,107	$ 6,961,016
Non Deductible Accruals	115,346	65,108
Net operating carryforwards	49,170,420	54,900,136
Tax credits	6,751,692	5,644,097
Property and equipment and Depreciation	111,190	195,408
Inventory	1,093,401	130,822
Deferred Tax Assets - gross	63,849,156	67,896,587
Valuation allowance	(55,425,850)	(62,156,300)
Deferred tax assets - net	8,423,306	5,740,287
Deferred tax liabilities:
Capitalized software development costs	(510,492)	(583,990)
Total deferred tax liabilities	(510,492)	(583,990)
Net deferred tax liabilities	$ 7,912,814	$ 5,156,297

NOTE 12 - OTHER CURRENT LIABI67

NOTE 12 - OTHER CURRENT LIABILITIES - Other Current Liabilities - (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Payables and Accruals [Abstract]
Accrued salaries, commissions and payroll taxes	$ 991,603	$ 834,324
Accrued interest	117,480	117,480
Litigation accruals	521,149	664,349
Sales tax payable	2,538,340	2,665,181
Legal and other professional fees	344,060	438,730
Accounting fees	$ 235,000	325,139
Purchase Scanners		450,000
Self-funded health insurance reserve	$ 510,150	298,004
Interest and penalty - sales tax	2,508,840	2,374,339
Other	486,011	582,740
Other current liabilities	$ 8,252,633	$ 8,750,286

NOTE 13 - COMMITMENTS AND CON68

NOTE 13 - COMMITMENTS AND CONTINGENCIES - Future Minimums Operating Lease Commitments - (Details)	Jun. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Facilities And Equipment (Operating Lease) Due in 2016	$ 3,717,939
Facilities And Equipment (Operating Lease) Due in 2017	3,191,082
Facilities And Equipment (Operating Lease) Due in 2018	2,722,882
Facilities And Equipment (Operating Lease) Due in 2019	2,129,428
Facilities And Equipment (Operating Lease) Due in 2020	1,866,277
Facilities And Equipment (Operating Lease) Due Thereafter	8,094,188
Total minimum obligations	$ 21,721,796

NOTE 14 - OTHER INCOME (EXPEN69

NOTE 14 - OTHER INCOME (EXPENSE) - Other Income (Expense) - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Other Income and Expenses [Abstract]
Loss on disposition of equipment		$ (657,350)
Loss from investment			$ (48,777)
Litigation settlement		$ 13,586	$ 716,250
Gain on extinguishment of debt	$ 394,797
Impairment on management agreement			$ (357,500)
Gain on sale of equipment		$ 40,000	557,473
Other income (expense)	$ 13	(4,835)	(141,958)
Other Income - net	$ 394,810	$ (608,599)	$ 725,488

NOTE 17 - SEGMENT AND RELATED70

NOTE 17 - SEGMENT AND RELATED INFORMATION - Sumarized Segments - (Details) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Net revenues from external customers	$ 16,878,000	$ 17,096,000	$ 17,092,000	$ 17,985,000	$ 17,025,000	$ 17,040,000	$ 17,609,000	$ 16,831,000	$ 69,050,996	$ 68,505,477	$ 49,141,814
Intersegment net revenues									2,005,000	1,963,750	1,200,000
Income from operations									12,899,877	12,302,669	7,535,747
Depreciation and amortization									3,544,470	3,817,205	2,421,177
Compensatory element of stock issuances									53,200	223,000	415,021
Total identifiable assets									76,492,077	76,789,843	73,150,650
Capital expenditures									270,842	834,908	25,407,939
Manufacturing And Servicing Of Medical Equipment
Net revenues from external customers									11,480,295	12,070,563	14,891,075
Intersegment net revenues									2,005,000	1,963,750	1,200,000
Income from operations									504,895	468,793	139,390
Depreciation and amortization									306,183	410,728	541,551
Compensatory element of stock issuances									53,200	223,000	415,021
Total identifiable assets									18,997,142	18,093,789	15,071,225
Capital expenditures									209,534	234,275	237,636
Management of Diagnostic Imaging Centers
Net revenues from external customers									$ 57,570,701	$ 56,434,914	$ 34,250,739
Intersegment net revenues
Income from operations									$ 12,394,982	$ 11,833,876	$ 7,396,357
Depreciation and amortization									$ 3,238,287	$ 3,406,477	$ 1,879,626
Compensatory element of stock issuances
Total identifiable assets									$ 57,494,935	$ 58,696,054	$ 58,079,425
Capital expenditures									$ 61,308	$ 600,633	$ 25,170,303

NOTE 17 - SEGMENT AND RELATED71

NOTE 17 - SEGMENT AND RELATED INFORMATION - Export Product Sales - (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Foreign Product Sales	7420.00%	4240.00%	380.00%
United Arab Emerites
Foreign Product Sales		2980.00%
Switzerland
Foreign Product Sales	220.00%	1240.00%
Canada
Foreign Product Sales	10.00%
England
Foreign Product Sales			360.00%
Germany
Foreign Product Sales	7190.00%		10.00%
Libya
Foreign Product Sales		20.00%	10.00%

NOTE 17 - SEGMENT AND RELATED72

NOTE 17 - SEGMENT AND RELATED INFORMATION - Foreign Service and Repair Fees - (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Foreign Service and Repair fees	740.00%	880.00%	820.00%
Spain
Foreign Service and Repair fees	100.00%	100.00%	90.00%
Puerto Rico
Foreign Service and Repair fees	120.00%	110.00%	100.00%
Switzerland
Foreign Service and Repair fees	70.00%	110.00%	110.00%
Germany
Foreign Service and Repair fees	70.00%	40.00%
England
Foreign Service and Repair fees	170.00%	260.00%	200.00%
Holland
Foreign Service and Repair fees	60.00%	130.00%	220.00%
Canada
Foreign Service and Repair fees	10.00%	20.00%
Greece
Foreign Service and Repair fees	20.00%
Australia
Foreign Service and Repair fees	120.00%	110.00%	100.00%

NOTE 18 - ALLOWANCE FOR DOUBT73

NOTE 18 - ALLOWANCE FOR DOUBTFUL ACCOUNTS - Allowance For Doubtful Accounts (Details) (USD $) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Receivables from equipment sales and service contracts
Balance Beginning	$ 257,362	$ 257,362	$ 1,852,987
Additions (Included in provision for bad debts)	$ 105,000		(92,454)
Deductions			1,503,171
Balance Ending	$ 362,362	$ 257,362	257,362
Management fee receivable
Balance Beginning	10,901,619	9,095,320	7,458,345
Additions (Included in provision for bad debts)	$ 2,370,032	$ 1,806,299	$ 1,636,975
Deductions
Balance Ending	$ 13,271,651	$ 10,901,619	$ 9,095,320
Management fee receivable from related medical practices
Balance Beginning	$ 403,047	$ 403,047	$ 403,047
Additions (Included in provision for bad debts)
Deductions
Balance Ending	$ 403,047	$ 403,047	$ 403,047
Medical receivables
Balance Beginning	14,032,067	2,584,669
Additions (Included in provision for bad debts)	12,770,249	10,333,082	$ 2,584,669
Deductions	11,343,160	(1,114,316)
Balance Ending	15,459,156	14,032,067	$ 2,584,669
Advance and notes to related parties
Balance Beginning	$ 202,379	$ 202,379	$ 239,791
Additions (Included in provision for bad debts)
Deductions	$ 202,379		$ 37,412
Balance Ending		$ 202,379	202,379
Notes Receivable from MRI Customers
Balance Beginning			$ 65,000
Additions (Included in provision for bad debts)
Deductions			$ 65,000
Balance Ending

NOTE 19 - QUARTERLY FINANCIAL74

NOTE 19 - QUARTERLY FINANCIAL DATA (UNAUDITED) - Unaudited Quarterly Financial Tables- (Details) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Total Revenues - Net	$ 16,878,000	$ 17,096,000	$ 17,092,000	$ 17,985,000	$ 17,025,000	$ 17,040,000	$ 17,609,000	$ 16,831,000	$ 69,050,996	$ 68,505,477	$ 49,141,814
Total Costs and Expenses	13,680,000	14,430,000	13,494,000	14,547,000	14,390,000	14,721,000	14,314,000	12,778,000	56,151,119	56,202,808	41,606,067
Net Income	$ 6,200,000	$ 2,519,000	$ 3,455,000	$ 3,256,000	$ 4,582,000	$ 2,147,000	$ 3,048,000	$ 3,620,000	$ 15,430,383	$ 13,396,769	$ 10,256,362
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.89	$ 0.31	$ 0.41	$ 0.39	$ 0.64	$ 0.27	$ 0.33	$ 0.38	$ 2.13	$ 1.73	$ 1.46
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.86	$ 0.31	$ 0.40	$ 0.39	$ 0.62	$ 0.26	$ 0.33	$ 0.37
Common Stock
Basic Net Income Per Common Share Available to Common Stockholders									2	1.62	1.37
Diluted Net Income Per Common Share Available to Common Stockholders									$ 1.95	$ 1.58	$ 1.34

NOTE 1 - DESCRIPTION OF BUSIN75

NOTE 1 - DESCRIPTION OF BUSINESS, LIQUIDITY AND CAPITAL RESOURCES (Details Narrative)	Jun. 30, 2015MRICenter	Mar. 05, 2013USD ($)MRICenter
Diagnostic Imaging Facilities Managed by Imperial Management LLC	11
Health Diagnostics Management LLC (HDM)
Cost of Majority Interest for Health Diagnostics Management LLC | $		$ 40,000,000
Stand-Up MRI scanners being managed by Health Diagnostics Management LLC		12
Recumbent MRI scanners being managed by Health Diagnostics Management LLC		2

NOTE 2 - SUMMARY OF SIGNIFICA76

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Jun. 30, 2015USD ($)Agreementsshares	Jun. 30, 2014USD ($)shares	Jun. 30, 2013USD ($)shares
Maintenance and Repair Expenses	$ 1,037,000	$ 1,037,000	$ 598,000
Management Agreements with Company - Non Related Medical Practices | Agreements	17
Management Agreements with Company - Related Medical Practices | Agreements	3
Management Agreements with Company - Total Medical Practices | Agreements	20
Advertising Costs	$ 894,000	889,000	835,000
Shipping and Handling Expense	$ 9,293	$ 1,885	$ 5,838
Number of shares added to diluted EPS upon conversion of Class C Common | shares	127,504	127,504	127,504
Cash on Deposit in Bank	$ 7,038,000
Cash FDIC insured Amount	$ 250,000
Net revenues from related parties as a percentage of consolidated net revenues	11.00%	11.00%	16.00%
Net management fee receivables from the related medical practices as a percentage of the consolidated accounts receivable	12.00%	12.00%	9.00%
Diagnostic Imaging Facility
Contractual fees per month for services rendered minimum	$ 100,000
Contractual fees per month for services rendered maximum	242,000
Lease fee per month for medical equipment for managed centers	$ 2,000

NOTE 3 - ACCOUNTS RECEIVABLE,77

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - (Details Narrative)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Note 3 - Accounts Receivable Medical Receivable And Management And Other Fees Receivable - Details Narrative
Percentage of PC's net revenue derived from no-fault and personal injury protection claims	54.00%	50.00%	41.00%
Percentage of consolidated net revenue from management fees charged to related party medical practices	11.00%	11.00%	16.00%

NOTE 6 - PROPERTY AND EQUIPME78

NOTE 6 - PROPERTY AND EQUIPMENT- (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Cost and accumulated depreciation basis of retired assets that were fully depreciated	$ 1,151,541
Property and Equipment
Depreciation and amortization	2,259,842	$ 2,458,113	$ 1,554,458
Diagnostic Equipment Under Capital Lease
Depreciation and amortization	0	95,026	248,123
Accumulated depreciation and amortization	$ 620,307	$ 620,307	$ 525,281

NOTE 7 - OTHER INTANGIBLE ASS79

NOTE 7 - OTHER INTANGIBLE ASSETS - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Weighted average amortization period (years)	10 years 328 days
Patents and Copyrights
Amortization other intangible assets	$ 183,272	$ 178,836	$ 168,631
Capitalized software development costs
Amortization other intangible assets	325,642	407,876	335,350
Management Agreement
Amortization other intangible assets	0	0	100,833
Non-competition agreements
Amortization other intangible assets	585,714	585,714	195,238
Customer Relationships
Amortization other intangible assets	$ 190,000	$ 186,667	$ 66,667

NOTE 8 - CAPITAL STOCK - (Detai

NOTE 8 - CAPITAL STOCK - (Details Narrative) - shares	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013	Aug. 10, 2010	Apr. 23, 2010	Jul. 01, 2002
Shares reserved for 2010 Stock Bonus Plan					2,000,000
Shares Registered under Form S-8 for 2010 Stock Bonus Plan				2,000,000
Common Stock available under2010 Stock Bonus Plan	953,367
Shares issued under 2010 Stock Bonus Plan	5,000	46,708	67,870
Issuance of stock options for 2002 Stock Option Plan						100,000
Stock options expired under 2002 Stock Option Plan		6,610
Options outstanding under 2002 Stock Option Plan	0
Common stock available under 2005 Stock Option Plan	0
Common Stock
Dividends Payable Nature	Cash dividends payable on the common stock shall, in all cases, be on a per share basis, one hundred twenty percent (120%) of the cash dividend payable on shares of Class B common stock and three hundred sixty percent (360%) of the cash dividend payable on a share of Class C common stock.
Class B Members
Terms of Conversion	Class B common stock is convertible into shares of common stock on a one-for-one basis.
Shares Outstanding	There were 146 and 146 of such shares outstanding at June 30, 2014 and 2013, respectively.
Votes Per Share	Class B common stock has 10 votes per share.
Class C Common Stock
Terms of Conversion	On April 3, 1995, the stockholders ratified a proposal creating a new Class C common stock and authorized the exchange offering of three shares of Class C common stock for each share of the Companys outstanding Class B common stock. The Class C common stock was offered on a three-for-one basis to the holders of the Class B common stock. Although having greater voting power, each share of Class C common stock has only one-third of the rights of a share of Class B common stock to dividends and distributions. Class C common stock is convertible into shares of common stock on a three-for-one basis.
Votes Per Share	The Class C common stock has 25 votes per share, as compared to 10 votes per share for the Class B common stock and one vote per share for the common stock.
Class A Non Voting Preferred Stock
Dividends Payable Nature	On April 3, 1995, the stockholders ratified a proposal consisting of the creation of a new class of Class A non-voting preferred stock with special dividend rights and the declaration of a stock dividend on the Companys common stock consisting of one share of Class A non-voting preferred stock for every five shares of common stock. The stock dividend was payable to holders of common stock on October 20, 1995. The Class A non-voting preferred stock is entitled to a special dividend equal to 3-1/4% of first $10 million, 4-1/2% of next $20 million and 5-1/2% on amounts in excess of $30 million of the amount of any cash awards or settlements received by the Company in connection with the enforcement of five of the Companys patents in its patent lawsuits, less the revised special dividend payable on the common stock with respect to one of the Companys patents. The Class A non-voting preferred stock participates on an equal per share basis with the common stock in any dividends declared and ranks equally with the common stock on distribution rights, liquidation rights and other rights and preferences (other than the voting rights).
Shares Outstanding	Class A non-voting preferred stock issued pursuant to such stock dividend approximates 313,000 shares.
Votes Per Share	The Class A non-voting preferred stock has no voting rights.

NOTE 9 - CONTROLLING AND NONC81

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - (Details Narrative)	4 Months Ended	12 Months Ended	30 Months Ended	60 Months Ended
	Jun. 30, 2013USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Sep. 01, 2019Installments	May. 01, 2015USD ($)	Jan. 08, 2015USD ($)	Jun. 30, 2014USD ($)	May. 01, 2014USD ($)	Jun. 01, 2013USD ($)	May. 01, 2013USD ($)	Mar. 05, 2013USD ($)MRICenter	Feb. 13, 2013USD ($)	May. 02, 2011USD ($)	Jan. 01, 2011USD ($)	May. 01, 2010
Controlling Interest acquired by Company of Health Diagnostics Management, LLC, (HDM)												50.50%
Health Diagnostics Management (HDM) Class A Members ownership interest						6040.00%
Health Diagnostics Management (HDM) Class A (Outside Investors) Members contribution												$ 19,800,000
Health Diagnostics Management (HDM) Class B (Company) Members contribution												20,200,000
Total Capital Contribution												14,000,000
Bank Term loan												$ 11,000,000
Interest Rate of Term Loan												4.75%
Number of Consecutive Installments | Installments				60
Bank Revolving Credit Loan												$ 3,000,000
Interest Rate of Revolving Credit Loan												4.00%
Private Placement of Equity and Capital Raise (Imperial)													$ 6,000,000
HMCA ownership percentage of Imperial		96.00%	96.00%
Redemption of Class A Members Capital Contribution (Imperial)					$ 1,125,100			$ 1,125,100		$ 1,424,900
Purchase of Interest from Unrelated party of Entity that provides management services to a diagnostic center in the NY Metropolitan Area, Percentage Acquired						20.00%	50.00%		50.00%					34.80%	15.20%
Purchase of Interest from Unrelated party of Entity that provides management services to a diagnostic center in the NY Metropolitan Area, Note Issued for Purchase						$ 4,971,094	$ 700,000		$ 700,000					$ 400,000
Description of Controlling interest in an entity which the Company consolidates			The Company also has a 50% controlling interest in an entity which the Company consolidates, that provides management services to a diagnostic center in the New York Metropolitan area.
Net aggregates to noncontrolling interest in entity which provides management services to diagnostic center in NY metro.	$ 559,221	$ 359,157	$ 359,157				$ 531,474
Company purchased Class A members ownership interest in Health Diagnostic Management, LLC (%)						20.00%	50.00%		50.00%					34.80%	15.20%
Company purchase price for 20% ownership in Health Diagnostic Management, LLC ($)						$ 4,971,094	$ 700,000		$ 700,000					$ 400,000
Current Company ownership of Health Diagnostic Management, LLC (%)						6040.00%
Total Net Income
HDM's total net revenues and income from operations	14,834,143
HDM Total Net Revenues
HDM's total net revenues and income from operations	$ 1,958,714
Class A Member | Health Diagnostics Management LLC (HDM)
Health Diagnostics Management (HDM) Class A Members ownership interest												49.50%
Current Company ownership of Health Diagnostic Management, LLC (%)												49.50%
Class B Member | HDM Equity
Health Diagnostics Management (HDM) Class B Members ownership interest												50.50%
Health Diagnostics Management LLC (HDM)
Health Diagnostics Management (HDM) purchase of Stand-Up MRI Centers from Health Diagnostics, LLC (HD) | MRICenter											12
Health Diagnostics Management (HDM) purchase of Other MRI Centers from Health Diagnostics, LLC (HD) | MRICenter											2
Total Cost of Health Diagnostics Management (HDM) purchase of the MRI Centers from Health Diagnostics, LLC (HD)											$ 35,900,000
Consideration to Outside Investors Regarding Health Diagnostics Management (HDM) purchase of the MRI Centers from Health Diagnostics, LLC (HD)											1,500,000
Consideration For Non-Competition and Consulting Agreements Regarding Health Diagnostics Management (HDM) purchase of the MRI Centers from Health Diagnostics, LLC (HD)											4,100,000
Cost of Majority Interest for Health Diagnostics Management LLC (HDM)											$ 40,000,000
Private Placement
Private Placement Description (Imperial)		On May 2, 2011, the Company completed a private placement of equity and succeeded in raising $6,000,000.

NOTE 11 - INCOME TAXES - (Detai

NOTE 11 - INCOME TAXES - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Note 11 - Income Taxes - Details Narrative
Deferred Tax Asset	$ 8,423,306
Deferred Tax Liability	510,492
Net Operating Loss (NOL) Carryforwards Available to Offset Future Taxable Income	122,926,000
Research and Development Tax Credit Carryforwards	4,510,000
Alternate Minimum Tax Credits	1,109,000
NY State Tax Credit Carryforwards	1,133,000
Decrease in Valuation Allowance for Deferred Tax Assets	$ 6,730,000	$ 6,392,000

NOTE 13 - COMMITMENTS AND CON83

NOTE 13 - COMMITMENTS AND CONTINGENCIES - (Details Narrative) - USD ($)	12 Months Ended			120 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2025
Rent Expense	$ 4,266,000	$ 4,571,000	$ 4,035,000
Early termination Expense rent			690,000
Property Tax Abatement from Suffolk County IDA (dollars)				$ 440,000
Property Tax Abatement from Suffolk County IDA (%)				50.00%
Employer Contributions to 401(k) Plan	0	0	0
Average Monthly Payment for Stipulation Agreements	19,552
Gain recorded to income statement as result of lawsuit			$ 755,500
Included in Company's Accrued Expenses As Result of Lawsuit	300,000	300,000
Recorded sales tax obligations - principal	2,538,000
Recorded sales tax obligations - interest and penalties	2,509,000
Reserve for Self-Funded Health Insurance Program	510,000	$ 298,000
Stop-Loss Umbrella Policy with 3rd ParyInsurer to Limit Maximum Potential Liability for individual Claims	$ 100,000
2000 Employee Stock Purchase Plan
2000 Employee Stock Purchase Plan (ESPP)	The stockholders of the Company approved the 2000 Employee Stock Purchase Plan (“ESPP”) at the Company’s annual stockholders’ meeting in April 2000. The ESPP provides for eligible employees to acquire common stock of the Company at a discount, not to exceed 15%. This plan has not been put into effect as of June 30, 2015.
Golden Triangle
Details of Case	Golden Triangle Company v. Fonar Corporation et al, CV10-2933. The Plaintiff contracted with the Company to purchase a scanner, and paid $1,455,500 in advance. The scanner was never delivered, but Plaintiff never designed a site for delivery either. Alleging other damages, fraud and deceptive trade practices, Plaintiff sought up to $5,000,000. The Company made a motion to dismiss the complaint, the outcome of which left Plaintiff with only a cause of action for breach of contract. The claims against the individual officers and employees of the Company were dismissed. The Company filed its answer, together with a counterclaim alleging that the Plaintiff, by attempting to overcharge the end-customer, had damaged the Company’s reputation and ability to sell in Kuwait. The case was settled in June 2013 for $480,000 in cash and 30,000 shares of the Company’s common stock payable in installments. The Company recorded a gain of $755,500 on the statements of income for the year ended June 30, 2013.
Settlement of Case (value)	$ 480,000
Settlement of Case (shares)	30,000
Matt Malek Madison
Details of Case	Matt Malek Madison v. Fonar Corporation, United States District Court, Northern District of California, was commenced by plaintiff on August 27, 2007 to recover a down payment for a scanner in the amount of $300,000, with interest. The plaintiff sought costs of suit and attorney’s fees as well. The Company answered the complaint and sued the plaintiff for breach of contract in the amount of $450,000. Although down payments are usually expressly non-refundable in the Company’s quotations and agreements, in this case, the quotation contemplated the sale of four scanners, and provided that the deposit would be refundable with interest, if the customer were unable to find suitable locations in the San Francisco Bay area. The issue was whether the customer made a good faith effort to find locations; the Company’s position was that the customer did not. The case went to trial before a judge; the parties submitted post-trial briefs, and judgment was awarded to the plaintiff. The Company appealed the trial court’s decision, but on January 31, 2012, the U.S. Court of Appeals for the 9th Circuit affirmed the lower court’s decision awarding the plaintiff the $300,000 deposit with prejudgment interest from July 1, 2006. The Company sought to have the Court of Appeals reconsider the decision en banc, (by all or a larger number of the judges on the Circuit Court of Appeals), but this was not granted. Although the case has been concluded, the plaintiff has not taken any steps to collect the judgment. As of June 30, 2015 and 2014, $300,000 was included in the Company’s accrued expenses.
Settlement of Case (value)	$ 300,000
Bonutti Research and Bolt MRI Technology
Details of Case	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 have settled the case for $150,000 payable by Fonar in twelve installments and certain licenses and covenants not to sue. The $150,000 has been recorded in the Company’s consolidated statements of income for the year ended June 30, 2014. As of June 30, 2015, the Company has paid the $150,000. 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 covers this case as well.
Settlement of Case (value)	$ 150,000
Jack Shapiro
Details of Case	Shapiro v. Fonar Corporation, New York Supreme Court, Suffolk County. Previously, The Company and Dr. Shapiro had settled an action commenced in Nassau County under the same name. The amount remaining payable under the settlement agreement according to The Company’s records is $258,400, but the payment and timing of the payment was dependent on obtaining an order for an Upright® MRI Scanner for the Company and the making of installment payments thereunder by the customer. Briefly stated, the balance of $258,400 was and is not yet due. Dr. Shapiro claims that the Company was in breach of the settlement agreement and seeks payment of no less than $307,000 plus interest and attorneys’ fees. The Company believes it has scrupulously observed the terms of the settlement agreement and that Dr. Shapiro’s claims are without merit. The Company answered the Complaint and the one is now in discovery.
Settlement of Case (value)	$ 258,400

NOTE 15 - SUPPLEMENTAL CASH F84

NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Note 15 - Supplemental Cash Flow Information - Details Narrative
Interest paid	$ 516,385	$ 668,475	$ 389,907
Income taxes paid	$ 143,996	$ 349,501	$ 277,000

NOTE 17 - SEGMENT AND RELATED85

NOTE 17 - SEGMENT AND RELATED INFORMATION - (Details Narrative)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Note 17 - Segment And Related Information - Details Narrative
Export Sales of medical equipment	74.20%	42.40%	3.80%
Foreign Revenues of service and repair of medical equipment	7.40%	8.80%	8.20%

NOTE 20 - SUBSEQUENT EVENTS - (

NOTE 20 - SUBSEQUENT EVENTS - (Details Narrative)	May. 01, 2015
Note 20 - Subsequent Events - Details Narrative
Ownership interest of Imperial in HDM	24.20%
Ownership interest of HMCA in HDM	45.80%
Ownership interest of original investors in HDM	30.00%