FONAR (FONR) 10-K 28 Sep 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2016	Sep. 06, 2016	Dec. 31, 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, 2016
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			$ 104,000,000
Entity Common Stock, Shares Outstanding		6,157,766
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Balance Sheets

Balance Sheets - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Current Assets:
Cash and cash equivalents	$ 8,528,309	$ 9,448,798
Accounts receivable - net of allowances for doubtful accounts of $284,279 and $362,362 at June 30, 2016 and 2015, respectively	4,370,155	3,790,981
Medical receivables - net of allowances for doubtful accounts of $17,451,782 and $15,459,156 at June 30, 2016 and 2015, respectively	10,126,397	9,082,319
Management and other fees receivable - net of allowances for doubtful accounts of $13,945,507 and $13,271,651 at June 30, 2016 and 2015, respectively	15,637,831	14,057,962
Management and other fees receivable - related party medical practices - net of allowances for doubtful accounts of $392,505 and $403,047 at June 30, 2016 and 2015, respectively	4,063,539	3,507,204
Costs and estimated earnings in excess of billings on uncompleted contracts		681,660
Inventories	2,074,300	2,191,849
Prepaid expenses and other current assets	759,042	860,040
Total Current Assets	45,559,573	43,620,813
Deferred income tax asset	13,042,360	8,423,306
Property and equipment - net	14,512,706	12,901,195
Goodwill	3,322,158	1,767,098
Other intangible assets - net	7,719,358	8,950,160
Other Assets	731,451	829,505
Total Assets	84,887,606	76,492,077
Current Liabilities:
Current portion of long-term debt and capital leases	2,447,693	2,490,146
Accounts payable	1,254,485	1,782,442
Other current liabilities	10,826,793	8,252,633
Unearned revenue on service contracts	4,678,914	4,187,401
Customer deposits	1,198,739	1,937,813
Billings in excess of costs and estimated earnings on uncompleted contracts	206,623	142,217
Total Current Liabilities	20,613,247	18,792,652
Long-Term Liabilities:
Deferred Income Tax Liability	481,779	510,492
Due to related medical practices	245,041	236,920
Long-Term Debt and Capital Leases, Less Current Portion	2,059,236	5,699,302
Other Liabilities	711,996	469,198
Total Long-Term Liabilities	3,498,052	6,915,912
Total Liabilities	24,111,299	25,708,564
Stockholders' Equity:
Paid-in capital in excess of par value	173,702,335	175,447,586
Accumulated deficit	(120,624,010)	(136,348,635)
Notes receivable from employee stockholders	(23,879)	(31,495)
Treasury stock, at cost - 11,643 shares of common stock at June 30, 2016 and 2015	(675,390)	(675,390)
Total Fonar Corporation Stockholder Equity	52,379,732	38,392,742
Noncontrolling interests	8,396,575	12,390,771
Total Stockholders' Equity	60,776,307	50,783,513
Total Liabilities and Stockholders' Equity	84,887,606	76,492,077
Class A Non-Voting Preferred
Stockholders' Equity:
Preferred Stock Value	31	31
Class A Non-Voting Preferred Stock
Stockholders' Equity:
Preferred Stock Value
Common Shares
Stockholders' Equity:
Common Stock Value	607	607
Class B Common Stock
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, 2016	Jun. 30, 2015
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 Shares
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	8,500,000	8,500,000
Common Stock, Issued	6,062,809	6,057,483
Common Stock, Outstanding	6,051,166	6,045,840
Class B Common Stock
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, 2016	Jun. 30, 2015	Jun. 30, 2014
Revenues
Product sales - net	$ 1,276,882	$ 1,820,979	$ 1,877,932
Service and repair fees - net	9,396,736	9,549,316	10,082,631
Service and repair fees - related parties - net	110,000	110,000	110,000
Patient revenue - net of contractual allowances and discounts	32,985,809	28,153,598	24,307,192
Provision for bad debts for patient fee	(14,539,786)	(12,770,249)	(10,333,082)
Management and other fees - net	36,633,230	34,805,627	34,839,969
Management and other fees - related medical practices - net	7,505,339	7,381,725	7,620,835
Total Revenues - Net	73,368,210	69,050,996	68,505,477
Costs and Expenses
Costs related to product sales	1,254,328	1,882,230	1,067,120
Costs related to service and repair fees	2,148,143	2,189,373	2,496,985
Costs related to service and repair fees -related parties	25,147	25,220	27,242
Costs related to patient fee revenue	9,418,935	7,939,524	7,670,484
Costs related to management and other fees	21,949,583	20,970,116	20,851,065
Costs related to management and other fees - related medical practices	4,074,762	3,883,953	3,744,446
Research and development	1,631,846	1,812,398	1,760,821
Selling, general and administrative, inclusive of compensatory element of stock issuances of $2,006, $53,200 and $223,000 for the years ended June 30, 2016, 2015 and 2014, respectively	18,509,850	17,448,305	18,584,645
Provision for bad debts	(201,949)	2,475,032	1,806,299
Total Costs and Expenses	59,012,594	56,151,119	56,202,808
Income from Operations	14,355,616	12,899,877	12,302,669
Other Income and (Expenses):
Interest expense	(262,193)	(702,095)	(884,541)
Investment income	224,263	225,270	238,928
Other income (expense) - net	190,560	394,810	(608,599)
Income before benefit for income taxes and noncontrolling interests	14,508,246	12,817,862	11,048,457
Benefit for Income Taxes	(4,287,271)	(2,612,521)	(2,348,312)
Net Income	18,795,517	15,430,383	13,396,769
Net Income - Noncontrolling Interests	(3,070,892)	(2,519,732)	(3,000,639)
Net Income - Attributable to FONAR	$ 15,724,625	$ 12,910,651	$ 10,396,130
Basic Net Income Per Common Share	$ 2.6	$ 2.13	$ 1.73
Weighted Average Shares Outstanding - Basic	6,050,893	6,050,632	6,009,822
Common Shares
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 14,702,834	$ 12,071,670	$ 9,720,030
Basic Net Income Per Common Share	$ 2.43	$ 2	$ 1.62
Diluted Net Income Per Common Share	$ 2.38	$ 1.95	$ 1.58
Weighted Average Shares Outstanding - Basic	6,050,893	6,050,632	6,009,822
Weighted Average Shares Outstanding - Diluted	6,178,397	6,178,136	6,137,326
Class A Non Voting Preferred Stock
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 761,561	$ 625,309	$ 503,911
Class C Common Stock
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 260,230	$ 213,672	$ 172,189
Basic Net Income Per Common Share	$ 0.68	$ 0.56	$ 0.45
Diluted Net Income Per Common Share	$ 0.68	$ 0.56	$ 0.45
Weighted Average Shares Outstanding - Basic	382,513	382,513	382,513
Weighted Average Shares Outstanding - Diluted	382,513	382,513	382,513

Statements of Operations (Paren

Statements of Operations (Parenthetical) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
compensatory element of stock issuances	$ 2,006	$ 53,200	$ 223,000

Shareholders Equity and Compreh

Shareholders Equity and Comprehensive Income - USD ($)	Class A Non-Voting Preferred	Common Shares	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, 2013		598
Balance - Beginning, 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)
Stock option exercised, Shares
Stock option exercised, Value
Balance - Ending, Shares at Jun. 30, 2015		607
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
Net Income					$ 11,272,442			$ 3,070,892	$ 18,795,517
Stock issued to employees under stock bonus plans, Shares
Stock issued to employees under stock bonus plans, Value		$ 146		$ 2,006					$ 2,006
Payments on notes receivable from employee stockholders						$ 7,616			$ 7,616
Issuance of stock for goods and services, Shares
Issuance of stock for goods and services, Value
Redemption of noncontrolling interests								1,155,988	(2,905,000)
Buyout of noncontrolling interests
Distributions to noncontrolling interests								(5,909,100)	(5,909,100)
Proceeds from noncontrolling interests
Stock option exercised, Shares
Stock option exercised, Value		$ 180		$ 1,755					$ 1,755
Balance - Ending, Shares at Jun. 30, 2016		607
Balance - Ending, Value at Jun. 30, 2016	$ 31	$ 6,051,166	$ 38	$ 173,702,335	$ (120,624,010)	$ (23,879)	$ (675,390)	$ 8,396,575	$ 60,776,307

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 18,795,517	$ 15,430,383	$ 13,396,769
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,297,289	3,544,470	3,817,205
Abandoned patents or software written off	88,796	413,589	250,523
Provision for bad debts	(201,949)	2,475,032	1,806,299
Deferred income tax benefit - net	(4,647,767)	(2,756,517)	(2,682,405)
Loss on disposition of equipment			657,350
Gain on acquisition	(192,999)
Compensatory element of stock issuances	2,006	53,200	223,000
Gain on extinguishment of debt		(394,797)
Stock issued for costs and expenses		$ 109,950	$ 531,825
Stock option exercised	1,755		30,600
(Increase) decrease in operating assets, net:
Accounts, medical and management fee receivables	$ (3,557,507)	$ (4,258,147)	$ (4,044,002)
Notes receivable	28,280	135,592	95,623
Costs and estimated earnings in excess of Billings on uncompleted contracts	681,660	78,149	(314,067)
Inventories	117,549	251,687	(366,448)
Prepaid expenses and other current assets	72,718	67,192	46,967
Other assets	18,054	41,125	131,811
Increase (decrease) in operating liabilities, net:
Accounts payable	(527,957)	(699,555)	(270,482)
Other current liabilities	3,065,673	(1,041,214)	295,219
Customer advances	(739,074)	11,000	68,943
Billings in excess of costs and estimated earnings on uncompleted contracts	64,406
Other Liabilities	242,798	(190,561)	(268,261)
Due to related medical practices	8,121	2,339	3,955
Income tax payable			(19,501)
NET CASH PROVIDED BY OPERATING ACTIVITIES	16,617,369	13,272,917	13,390,923
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(712,216)	(131,308)	(620,697)
Cost of acquisition	(4,223,567)
Cost of patents	(113,072)	(139,534)	(214,211)
NET CASH USED IN INVESTING ACTIVITIES	(5,048,855)	(270,842)	(834,908)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of borrowings and capital lease obligations	(3,682,519)	(2,788,401)	(4,400,128)
Repayment of notes receivable from employee stockholders	7,616	7,333	15,992
Distributions to noncontrolling interests	(5,909,100)	(4,627,851)	(4,965,770)
Redemption of noncontroling Interests	(2,905,000)	(1,125,000)	(1,125,100)
Buyout of noncontroling Interest		(4,971,094)
NET CASH USED IN FINANCING ACTIVITIES	(12,489,003)	(13,505,013)	(10,475,006)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(920,489)	(502,938)	2,081,009
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR	9,448,798	9,951,736	7,870,727
CASH AND CASH EQUIVALENTS - END OF YEAR	$ 8,528,309	$ 9,448,798	$ 9,951,736

NOTE 1 - DESCRIPTION OF BUSINES

NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY AND CAPITAL RESOURCES	12 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY AND CAPITAL RESOURCES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 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 June 30, 2016, the Company purchased 100% of the equity in Turnkey Services of New York, LLC and 100% of the equity in TK2 Equipment Management, LLC. Turnkey Service of New York, LLC and TK2 Equipment Management, LLC. These entities had provided the Company with ancillary diagnostic imaging equipment (under operating leases) to our managed MRI facilities. The Company paid $4,223,567 to acquire these two entities with net assets at fair value of $2,861,506. On 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. 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, 2016
Accounting Policies [Abstract]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 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 $1,113,000, $1,200,000 and $1,037,000 for the years ended June 30, 2016, 2015 and 2014, 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 15 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 product and related (upgrades and supplies) sales 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, 2016, the Company has twenty one management agreements of which three are with PC’s owned by Raymond V. Damadian, M.D., Chairman of the Board of FONAR (“the Related medical practices”) and eighteen 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 $69,000 to $277,000. 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, 2016, 2015 and 2014 are summarized in the following table. For the Year Ended June 30, 2016 2015 2014 Commercial Insurance/ Managed Care $ 4,659,322 $ 4,398,589 $ 4,217,088 Medicare/Medicaid 1,182,552 1,187,690 1,443,020 Workers' Compensation/Personal Injury 20,888,856 15,978,243 13,369,956 Other 6,255,079 6,589,076 5,277,128 Patient Fee Revenue, net of contractual allowances and discounts 32,985,809 28,153,598 24,307,192 Provision for Bad Debts (14,539,786 ) (12,770,249 ) (10,333,082 ) Net Patient Fee Revenue $ 18,446,023 $ 15,383,349 $ 13,974,110 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, increased 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 $535,000, $894,000 and $889,000 for the years ended June 30, 2016, 2015 and 2014, 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 $11,077, $9,293 and $1,885 for the years ended June 30, 2016, 2015 and 2014, 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, 2016, 2015 and 2014. 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, 2016, 2015 and 2014, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. June 30, 2016 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 15,724,625 $ 14,702,834 $ 260,230 Denominator: Weighted average shares outstanding 6,050,893 6,050,893 382,513 Basic income per common share $ 2.60 $ 2.43 $ 0.68 Diluted Denominator: Weighted average shares outstanding 6,050,893 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,178.397 382,513 Diluted income per common share $ 2.38 $ 0.68 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 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, 2016, the Company had cash on deposit of approximately $5,804,000 in excess of federally insured limits of $250,000. Related Parties: Net revenues from related parties accounted for approximately 10%, 11% and 11% of the consolidated net revenues for the years ended June 30, 2016, 2015 and 2014, respectively. Net management fee receivables from the related party medical practices accounted for approximately 12%, 12% and 12% of the consolidated accounts receivable for the years ended June 30, 2016, 2015 and 2014, 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, 2016 and 2015, 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 In March 2016, the FASB issued ASU No. 2016-09,”Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update includes provisions intended to simplify various aspects of accounting for share-based compensation. ASU No. 2016-09 will take effect for public companies for the annual periods beginning after December 15, 2016. The Company is currently assessing the potential impact of ASU No. 2016-09 on the Company’s financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which will require entities to present deferred tax assets and deferred tax liabilities as non-current in a classified balance sheet. The ASU simplified the current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current and non-current in a classified balance sheet. This standard is effective for annual periods and interim periods within those fiscal years, beginning after December 15, 2016 but permits entities to early adopt at the beginning of any interim or annual period. During the quarter ended December 31, 2015, the Company elected to early adopt ASU 2015-17 and applied the change retrospectively to all periods present. As a result, the Company presented all deferred assets and liabilities as non-current in its consolidated balance sheet. The adoption of this ASU did not result in a reclassification of the Company’s net deferred tax assets and liabilities as of June 30, 2015. As of June 30, 2016, there was no impact on the Company’s results of operations as a result of the adoption of ASU No. 2015-17 The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supercedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2017, as deferred including interim periods within the reporting period and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The Company is currently evaluating the effect that this ASU will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on it ongoing financial reporting. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. It is effective for annual reporting periods beginning after December 15, 2016. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2016 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 2016 or 2015, 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. During February 2016, FAS issued ASU 2016-02, Leases (Topic 842). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based upon the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Lease with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new guidance will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and is applied retrospectively. Early adoption is permitted. The Company is currently in the process of assessing the impact the adoption of this guidance will have on the Company’s consolidated financial statements. 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, 2016
Receivables [Abstract]
NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE 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 59%, 54% and 50%, respectively, of the PCs’ 2016, 2015 and 2014 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 10%, 11% and 11%, of the consolidated net revenues for the years ended June 30, 2016, 2015 and 2014, 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, 2016, 2015 and 2014. For The Year Ended June 30, 2016 2015 2014 Total Facilities Owned or Managed (at Beginning of Year) 24 24 24 Facilities Added by: Acquisition 1 — — Internal development — — 1 Managed Facilities Closed — — (1 ) Total Facilities Owned or Managed (at End of Year) 25 24 24

NOTE 4 - COSTS AND ESTIMATED EA

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS AND CUSTOMER ADVANCES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS Information relating to uncompleted contracts as of June 30, 2016 and 2015 is as follows: As of June 30, 2016 2015 Costs incurred on uncompleted contracts $ 893,976 $ 1,861,350 Estimated earnings 491,476 1,371,093 1,385,452 3,232,443 Less: Billings to date 1,592,075 2,693,000 $ (206,623 ) $ 539,443 Included in the accompanying consolidated balance sheets under the following captions: As of June 30, 2016 2015 Costs and estimated earnings in excess of billings on uncompleted contracts $ — $ 681,660 Less: Billings in excess of costs and estimated earnings on uncompleted contracts 206,623 142,217 $ (206,623 ) $ 539,443

NOTE 5 - INVENTORIES

NOTE 5 - INVENTORIES	12 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
NOTE 5 - INVENTORIES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 5 – INVENTORIES Inventories included in the accompanying consolidated balance sheets consist of: As of June 30, 2016 2015 Purchased parts, components and supplies $ 1,862,605 $ 2,043,411 Work-in-process 211,695 148,438 $ 2,074,300 $ 2,191,849

NOTE 6 - PROPERTY AND EQUIPMENT

NOTE 6 - PROPERTY AND EQUIPMENT	12 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
NOTE 6 - PROPERTY AND EQUIPMENT	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 6 - PROPERTY AND EQUIPMENT Property and equipment, at cost, less accumulated depreciation and amortization, at June 30, 2016 and 2015, is comprised of: As of June 30, 2016 2015 Diagnostic equipment under capital leases $ 620,307 $ 620,307 Diagnostic equipment 19,213,472 17,396,797 Research, development and demonstration equipment 3,904,846 3,580,224 Machinery and equipment 2,069,055 2,069,055 Furniture and fixtures 2,949,824 2,550,627 Leasehold improvements 5,616,143 4,502,915 Building 939,614 939,614 35,313,261 31,659,539 Less: Accumulated depreciation and amortization 20,800,555 18,758,344 $ 14,512,706 $ 12,901,195 Depreciation and amortization of property and equipment for the years ended June 30, 2016, 2015 and 2014 was $2,042,211, $2,259,842 and $2,458,113, respectively. Depreciation and amortization of diagnostic equipment under capital leases for the years ended June 30, 2016, 2015 and 2014 was $0, $0 and $95,026, respectively. Accumulated depreciation and amortization of diagnostic equipment under capital leases was $620,307, $620,307 and $620,307 for the years ended June 30, 2016, 2015 and 2014, 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, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
NOTE 7 - OTHER INTANGIBLE ASSETS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 7 - OTHER INTANGIBLE ASSETS Other intangible assets, net of accumulated amortization, at June 30, 2016 and 2015 are comprised of: As of June 30, 2016 2015 Capitalized software development costs $ 7,004,847 $ 7,004,847 Patents and copyrights 4,571,821 4,547,545 Non-competition agreements 4,100,000 4,100,000 Customer relationships 3,800,000 3,800,000 19,476,668 19,452,392 Less: Accumulated amortization 11,757,310 10,502,232 $ 7,719,358 $ 8,950,160 Information related to the above intangible assets for the years ended June 30, 2016, 2015 and 2014 is as follows: As of June 30, 2016 2015 2014 Balance – Beginning of Year $ 8,950,160 $ 10,508,843 $ 11,904,248 Amounts capitalized 113,072 139,534 214,211 Software or patents written off (88,796 ) (413,589 ) (250,523 ) Amortization (1,255,078 ) (1,284,628 ) (1,359,093 ) Balance – End of Year $ 7,719,358 $ 8,950,160 $ 10,508,843 Amortization of patents and copyrights for the years ended June 30, 2016, 2015 and 2014 amounted to $187,553, $183,272 and $178,836, respectively. Amortization of capitalized software development costs for the years ended June 30, 2016, 2015 and 2014 was $291,810, $325,642 and $407,876, respectively. Amortization of non-competition agreements for the years ended June 30, 2016, 2015 and 2014 amounted to $585,714, $585,714 and $585,714, respectively. Amortization of customer relationships for the years ended June 30, 2016, 2015 and 2014 amounted to $190,000, $190,000 and $186,667, respectively. The estimated amortization of other intangible assets for the five years ending June 30, 2021 and thereafter is as follows: For the Years Ending June 30, Total Patents and Copyrights Capitalized Software Development Costs Non- competition Customer Relation-ships 2017 $ 1,232,261 $ 196,547 $ 260,000 $ 585,714 $ 190,000 2018 1,155,571 206,524 173,333 585,714 190,000 2019 988,324 212,610 — 585,714 190,000 2020 791,112 210,635 — 390,477 190,000 2021 393,075 203,075 — — 190,000 Thereafter 3,159,015 942,348 — — 2,216,667 $ 7,719,358 $ 1,971,739 $ 433,333 $ 2,147,619 $ 3,166,667 The weighted average amortization period for other intangible assets is 10.7 years and they have no expected residual value.

NOTE 8 - CAPITAL STOCK

NOTE 8 - CAPITAL STOCK	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 8 - CAPITAL STOCK	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 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, 2016, 2015 and 2014, 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, 2016, 953,221 shares of common stock of FONAR were available for future grant under this plan. For the years ended June 30, 2016, 2015 and 2014, 146, 5,000 and 46,708 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 years ended June 30, 2016, 2015 and 2014 was as follows: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, June 30, 2013 6,610 29.00 — Granted — — — Exercised — — — Forfeited / Expired (6,610 ) 29.00 Outstanding, June 30, 2014 — — — Granted — — — Exercised — — — Forfeited / Expired — — — Outstanding, June 30, 2015 — — — Outstanding, June 30, 2016 — — — Exercisable at: June 30, 2014 — $ — June 30, 2015 — $ — June 30, 2016 — $ —

NOTE 9 - CONTROLLING AND NONCON

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS	12 Months Ended
	Jun. 30, 2016
Noncontrolling Interest [Abstract]
NOTE 9 - CONTROLLING AND NON CONTROLLING INTERESTS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 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. 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. 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, 2016, 2015 and 2014 June 30, 2016 June 30, 2015 June 30, 2014 Class A Member Class B Members Class A Member Class B Members Class A Member Class B Members Opening Members’ Equity $ 10,752,169 $22,043,621 $ 17,659,698 $ 21,113,266 $ 19,526,475 $ 20,763,830 Share of Net Income 2,886,006 13,229,621 1,988,915 5,704,999 2,266,473 4,566,186 Buyout — — (4,971,094 ) — — — Distributions (5,241,600 ) (11,958,400) (3,925,350 ) (4,774,644 ) (4,133,250 ) (4,216,750 ) Ending Members’ Equity $ 8,396,575 $ 23,314,842 $ 10,752,169 $ 22,043,621 $ 17,659,698 $ 21,113,266 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 2, 2016, May 1, 2015 and on May 1, 2014, the Company returned a portion of the Class A Members capital contribution in the amount of $1,125,000, $1,125,000 and $1,125,100, respectively. As of June 30, 2016, the Company’s subsidiary, HMCA, now owns approximately 100% interest in Imperial Management Services. Amount of each class of Imperial members’ equity as of June 30, 2016, 2015 and 2014 June 30, 2016 June 30, 2015 June 30, 2014 Class A Member Class B Members Class A Member Class B Members Class A Member Class B Members Opening Members’ Equity $ 1,279,446 $ 15,000,446 $ 2,403,812 $ 11,079,317 $ 3,599,519 $ 7,772,781 Share of Net Income — — 405,634 3,921,129 536,913 3,306,536 Distributions (202,500 ) — (405,000 ) — (607,520 ) - Buyout 48,054 Redemption (1,125,000 ) — (1,125,000 ) — (1,125,100 ) - Ending Members’ Equity $ — $ 15,000,446 $ 1,279,446 $ 15,000,446 $ 2,403,812 $ $11,079,317 The Company 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. On June 30, 2016, the Company purchased the remaining 50% interest in the entity making it a wholly owned subsidiary for the Company. The Company paid $1,780,000 to acquire this additional ownership interest.

NOTE 10 - LONG-TERM DEBT, NOTES

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES	12 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES Long-term debt, notes payable and capital leases consist of the following: 2016 2015 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 $584,170 as of June 30, 2016. $392,096 $416,844 The revolving credit note was extended to September 2018. 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. - - 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. 3,749,978 7,149,986 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. 316,088 488,499 Other (including capital leases for property and equipment). 48,767 134,119 4,506,929 8,189,448 Less: Current portion 2,447,693 2,490,146 $2,059,236 $5,699,302 The maturities of long-term debt over the next five years and thereafter are as follows: Years Ending June 30, 2017 $ 2,447,693 2018 1,722,474 2019 30,746 2020 32,944 2021 35,416 Thereafter 237,656 $ 4,506,929

NOTE 11 - INCOME TAXES

NOTE 11 - INCOME TAXES	12 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
NOTE 11 - INCOME TAXES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 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 2010. The Company has recorded a deferred tax asset of $13,042,360 and a deferred tax liability of $481,779 as of June 30, 2016, primarily relating to its net operating loss carryforwards of approximately $110,029,000 available to offset future taxable income through 2031. The net operating losses begin to expire in 2021 for federal tax purposes and in 2016 for state income tax purposes. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of year end, in part due to our ability to sustain profitable levels of income in the U.S. federal tax jurisdiction, management determined that there is sufficient positive evidence to conclude that it is more than likely than not that additional deferred taxes of $4.6 million are realizable. It therefore reduced the valuation allowance accordingly. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which temporary differences become deductible or when such net operating losses can be utilized. The Company considers projected future taxable income and tax planning strategies in making this assessment. At present, the Company believes that it is more likely than not that the benefits from certain NOL carryforwards, will not be fully realized. In recognition of this inherent risk, 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. Components of the current benefit for income taxes are as follows: Years Ended June 30, 2016 2015 2014 Current: Federal $ 360,496 $ 114,683 $ 310,000 State — 29,313 24,093 Federal deferred taxes (4,368,901 ) (2,353,124 ) (2,280,044 ) State deferred taxes (278,866 ) (403,393 ) (402,361 ) $ (4,287,271 ) $ (2,612,521 ) $ (2,348,312 ) 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, 2016 2015 2014 Taxes at federal statutory rate 35.0 % 35.0 % 34.0 % State and local income taxes (benefit), net of federal benefit 6.0 % 6.0 % 6.0 % Permanent differences 0.2 % 0.2 % (0.9 )% (Decrease) increase in the valuation allowance (89.8 )% (65.4 )% (65.5 )% True ups (0.0 )% (3.2 )% (2.8 )% Effective income tax rate (48.6 )% (27.4 )% (29.2 )% As of June 30, 2016, the Company has net operating loss (“NOL”) carryforwards of approximately $110,029,000 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 $4,528,000. The Company also has $1,118,000 in alternative minimum tax credits. In addition, for New York State income tax purposes, the Company has tax credit carryforwards aggregating approximately $1,112,000 which, are accounted for under the flow-through method. The tax credit carryforwards expire during the years ending June 30, 2016 to June 30, 2034. Significant components of the Company's deferred tax assets and liabilities at June 30, 2016 and 2015 are as follows: June 30, 2016 2015 Deferred tax assets: Allowance for doubtful accounts $ 6,495,094 $ 6,607,107 Non-deductible accruals 962,867 115,346 Net operating carryforwards 44,011,554 49,170,420 Tax credits 6,770,099 6,751,692 Inventory 105,250 111,190 Property and equipment and depreciation — 1,093,401 58,344,864 63,849,156 Valuation allowance (45,302,504 ) (55,425,850 ) Total deferred tax assets 13,042,360 8,423,306 Capitalized software development costs (481,779 ) (510,492 ) Total deferred tax liabilities (481,779 ) (510,492 ) Net deferred tax asset $ 12,560,581 $ 7,912,814 The valuation allowance for deferred tax assets decreased by approximately $10,123,000 during the year ended June 30, 2016 and decreased by approximately $6,730,000 during the year ended June 30, 2015.

NOTE 12 - OTHER CURRENT LIABILI

NOTE 12 - OTHER CURRENT LIABILITIES	12 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
NOTE 12 - OTHER CURRENT LIABILITIES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 12 - OTHER CURRENT LIABILITIES Included in other current liabilities are the following: June 30, 2016 2015 Accrued salaries, commissions and payroll taxes $ 3,188,665 $ 991,603 Accrued interest 45,479 117,480 Litigation accruals 545,029 521,149 Sales tax payable 2,402,448 2,538,340 Legal and other professional fees 384,810 344,060 Accounting fees 241,400 235,000 Self-funded health insurance reserve 392,178 510,150 Interest and penalty – sales tax 2,486,927 2,508,840 Other 1,139,857 486,011 $ 10,826,793 $ 8,252,633

NOTE 13 - COMMITMENTS AND CONTI

NOTE 13 - COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
NOTE 13 - COMMITMENTS AND CONTINGENCIES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 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, 2016: Year Ending June 30, Facilities And Equipment (Operating Lease) 2017 $ 3,839,635 2018 3,295,963 2019 2,704,324 2020 2,178,791 2021 1,848,522 Thereafter 6,733,116 Total minimum obligations $ 20,600,351 Rent expense for operating leases approximated $4,222,000, $4,266,000 and $4,571,000, for the years ended June 30, 2016, 2015 and 2014, respectively. The Company received approval from the Suffolk County IDA on February 29, 2016 of a 50% property tax abatement, valued at $440,000, over a 10 year period commencing January 2017. 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, 2016, 2015 and 2014. 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, 2016. Stipulation Agreements The Company has entered into stipulation agreements with a number of its creditors that in the aggregate total $297,339, which is included in other current liabilities and other liabilities on the Company’s balance sheet as of June 30, 2016. The monthly payments total $15,859. 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. 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, 2016 and 2015, $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. 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. The case was settled for $258,400 plus interest on February 18, 2016. 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 $2,402,000 plus interest and penalties of approximately $2,487,000. 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, 2016 and 2015, the Company had approximately $392,000 and $510,000, 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, 2016
Other Income and Expenses [Abstract]
NOTE 14 - OTHER (EXPENSE) INCOME	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 14 - OTHER INCOME (EXPENSE) Other income (expense) consists of: For the Years Ended June 30, 2016 2015 2014 Loss on disposition of equipment $ — $ — $ (657,350 ) Litigation settlement — — 13,586 Gain on extinguishment of debt — 394,797 — Gain on sale of equipment — — 40,000 Other income (expense) 190,560 13 (4,835 ) $ 190,560 $ 394,810 $ (608,599 )

NOTE 15 - SUPPLEMENTAL CASH FLO

NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION	12 Months Ended
	Jun. 30, 2016
Supplemental Cash Flow Elements [Abstract]
NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION During the years ended June 30, 2016, 2015 and 2014, the Company paid $356,106, $516,385 and $668,475 for interest, respectively. During the years ended June 30, 2016, 2015 and 2014, the Company paid $360,496, $143,996 and $349,501 for income taxes, respectively.

NOTE 16 - DUE TO RELATED MEDICA

NOTE 16 - DUE TO RELATED MEDICAL PRACTICES	12 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
NOTE 16 - DUE TO RELATED MEDICAL PRACTICES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 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, 2016 and 2015 was $134,880. Other Related Party Transactions A son of the Company’s Chairman of the Board and CEO and President of the Company is one of the minority owners of a billing company, 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 and CEO and President of the Company 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. A limited liability company of which a son of the Company’s Chairman of the Board and CEO and President of the Company is an owner also had a 1.375% interest in Yonkers Diagnostic Management, LLC, a 4.5% interest in Turnkey Services of New York, LLC and a 4.3% interest in TK2 Equipment Management, LLC. Entities in which the Executive Vice President and COO and his family had an interest had a 0.75% in Yonkers and a 5.9% in TK2 Equipment Management. The Company acquired these entities, or the portion thereof not already owned by the Company, through a series of merger transactions for $1,780,000 in the case of Yonkers, $1,147,715 in the case of Turnkey Services and $3,075,852 in the case of TK2 Equipment Management. A company of which a son of the Company’s Chairman of the Board and CEO and President of the Company is an owner and a company in which the Executive Vice President and COO has an interest also hold a 1.7% and 2.8% interest, respectively, in Turnkey Management of Great Neck, LLC, an entity for which the Company will perform management services. No services were performed and no fees were due in fiscal 2016. A company in which a son of the Company’s Chairman of the Board and CEO and President of the Company is an owner, also had a 14.967% interest in Imperial’s Class A membership interests and has a 6.06% interest in Health Management Company of America’s Class A membership interests. A company in which the Executive Vice President and COO and his family have an interest, had a 12.917% interest in Imperial’s Class A membership interests and has a 2.5% interest in Health Management Company of America’s Class A membership interests. The Company repurchased Imperial’s outstanding Class A memberships on May 1, 2016. An entity of a son of the Company’s Chairman of the Board and CEO and President of the Company received $179,000 for its interests and the Executive Vice President and COO company received $105,000 for its interests.

NOTE 17 - SEGMENT AND RELATED I

NOTE 17 - SEGMENT AND RELATED INFORMATION	12 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
NOTE 17 - SEGMENT AND RELATED INFORMATION	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 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 2016: Net revenues from external customers $ 10,783,618 $ 62,584,592 $ 73,368,210 Intersegment net revenues * $ 2,140,000 $ — $ 2,140,000 (Loss) Income from operations $ (1,979,497 ) $ 16,335,113 $ 14,355,616 Depreciation and amortization $ 320,843 $ 2,976,446 $ 3,297,289 Compensatory element of stock issuances $ 2,006 $ — $ 2,006 Total identifiable assets $ 28,241,501 $ 56,646,105 $ 84,887,606 Capital expenditures $ 437,695 $ 387,593 $ 825,288 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 * 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 19.6%, 74.2% and 42.4% of product sales revenues to third parties for the years ended June 30, 2016, 2015 and 2014, 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, 2016 2015 2014 United Arab Emirates -% -% 29.8 % Switzerland — 2.2 12.4 Canada 0.3 0.1 — England 18.5 — — Germany .6 71.9 — Puerto Rico .2 — — Libya — — 0.2 19.6 % 74.2 % 42.4 % 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 5.8%, 7.4% and 8.8% of consolidated net service and repair fees for the years ended June 30, 2016, 2015 and 2014, respectively. 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, 2016 2015 2014 Spain 0.3 % 1.0 % 1.0 % Puerto Rico 1.5 1.2 1.1 Switzerland 0.3 0.7 1.1 Germany 1.5 0.7 0.4 England 0.5 1.7 2.6 Holland — 0.6 1.3 Canada 0.3 0.1 0.2 Greece 0.2 0.2 — Australia 1.2 1.2 1.1 5.8 % 7.4 % 8.8 % 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, 2016
Valuation and Qualifying Accounts [Abstract]
NOTE 18 - ALLOWANCE FOR DOUBTFUL ACCOUNTS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 18 – ALLOWANCE FOR DOUBTFUL ACCOUNTS The following represents a summary of allowance for doubtful accounts for the years ended June 30, 2016, 2015 and 2014, respectively: Description Balance June 30, 2015 Additions Deductions Balance June 30, 2016 Accounts receivable $ 362,362 $ (1) $ 78,083 $ 84,279 Management and other fees receivable 13,271,651 (1) 673,856 — 13,945,507 Management and other fees receivable - related medical practices 403,047 — 10,542 392,505 Medical receivables 15,459,156 (1)14,539,786 12,547,160 17,451,782 Description Balance June 30, 2014 Additions Deductions Balance June 30, 2015 Accounts receivables $ 257,362 $ (1)105,000 $ $ 62,362 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 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, 2016
Note 19 - Quarterly Financial Data
NOTE 19 - QUARTERLY FINANCIAL DATA (UNAUDITED)	Quarterly Financial Data (Unaudited) (000’s omitted, except per share data) September 30, 2015 December 31, 2015 March 31, 2016 June 30, 2016 Total Total Revenues – Net $ 17,611 $ 18,369 $ 18,619 $ 18,769 $ 73,368 Total Costs and Expenses 13,996 14,144 14,522 16,351 59,013 Net Income 3,465 4,104 3,881 7,346 18,796 Basic Net Income Per Common Share Available to Common Stockholders $ 0.44 $ 0.54 $ 0.46 $ 0.99 $ 2.43 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.43 $ 0.53 $ 0.45 $ 0.97 $ 2.38 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

NOTE 20 - BUSINESS COMBINATIONS

NOTE 20 - BUSINESS COMBINATIONS	12 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
NOTE 20 - BUSINESS COMBINATIONS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 20 – BUSINESS COMBINATIONS Acquisitions On June 30, 2016, the Company purchased 100% interest in TK2 Equipment Management, LLC and Turnkey Services of New York, LLC. The consideration and net assets acquired is as follows: Cash Paid $ 4,223,567 Net assets at Fair Value 2,861,507 Goodwill $ 1,555,060 Pro forma Results The following unaudited pro forma results of operations for the twelve months ended June 30, 2016, 2015 and 2014 assumes that the above acquisitions were made at the beginning of the year prior to 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, 2016 Year ended June 30, 2015 Year ended June 30, 2014 Total Revenues – Net $ 73,368,210 $ 69,050,996 $ 68,505,477 Net Income - Controlling Interests $ 16,088,263 $ 13,175,717 $ 10,456,315 Net Income Available to Common Stockholders $ 15,042,842 $ 12,319,511 $ 9,776,301 Net Income Available to Class A Non-Voting Preferred Stockholders $ 779,173 $ 638,147 $ 506,828 Net Income Available to Class C Common Stockholders $ 266,248 $ 218,059 $ 173,186 Basic Net Income Per Common Share Available to Common Stockholders $ 2.49 $ 2.04 $ 1.63 Diluted Net Income Per Common Share Available to Common Stockholders $ 2.43 $ 1.99 $ 1.59 Basic and Diluted Income Per Share - Common C $ 0.70 $ 0.57 $ 0.45 Weighted Average Basic Shares Outstanding 6,050,893 6,050,632 6,009,822 Weighted Average Diluted Shares Outstanding 6,178,397 6,178,136 6,137,326 Weighted Average Basic and Diluted Shares Outstanding - Class C Common 382,513 382,513 382,513

NOTE 21 - SUBSEQUENT EVENTS

NOTE 21 - SUBSEQUENT EVENTS	12 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
NOTE 20 - SUBSEQUENT EVENTS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2016, 2015 and 2014 NOTE 21 – SUBSEQUENT EVENTS The Company evaluates events that have occurred after the balance sheet date, but before the consolidated financial statements are issued. Subsequent to June 30, 2016, the Company issued 106,600 shares of common stock in settlement of liabilities of approximately $2 million in other current liabilities.

NOTE 2 - SUMMARY OF SIGNIFICA29

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2016
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 $1,113,000, $1,200,000 and $1,037,000 for the years ended June 30, 2016, 2015 and 2014, 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 15 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 product and related (upgrades and supplies) sales 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, 2016, the Company has twenty one management agreements of which three are with PC’s owned by Raymond V. Damadian, M.D., Chairman of the Board of FONAR (“the Related medical practices”) and eighteen 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 $69,000 to $277,000. 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, 2016, 2015 and 2014 are summarized in the following table. For the Year Ended June 30, 2016 2015 2014 Commercial Insurance/ Managed Care $ 4,659,322 $ 4,398,589 $ 4,217,088 Medicare/Medicaid 1,182,552 1,187,690 1,443,020 Workers' Compensation/Personal Injury 20,888,856 15,978,243 13,369,956 Other 6,255,079 6,589,076 5,277,128 Patient Fee Revenue, net of contractual allowances and discounts 32,985,809 28,153,598 24,307,192 Provision for Bad Debts (14,539,786 ) (12,770,249 ) (10,333,082 ) Net Patient Fee Revenue $ 18,446,023 $ 15,383,349 $ 13,974,110
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, increased 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 $535,000, $894,000 and $889,000 for the years ended June 30, 2016, 2015 and 2014, 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 $11,077, $9,293 and $1,885 for the years ended June 30, 2016, 2015 and 2014, 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, 2016, 2015 and 2014. 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, 2016, 2015 and 2014, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. June 30, 2016 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 15,724,625 $ 14,702,834 $ 260,230 Denominator: Weighted average shares outstanding 6,050,893 6,050,893 382,513 Basic income per common share $ 2.60 $ 2.43 $ 0.68 Diluted Denominator: Weighted average shares outstanding 6,050,893 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,178.397 382,513 Diluted income per common share $ 2.38 $ 0.68 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
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, 2016, the Company had cash on deposit of approximately $5,804,000 in excess of federally insured limits of $250,000. Related Parties: Net revenues from related parties accounted for approximately 10%, 11% and 11% of the consolidated net revenues for the years ended June 30, 2016, 2015 and 2014, respectively. Net management fee receivables from the related party medical practices accounted for approximately 12%, 12% and 12% of the consolidated accounts receivable for the years ended June 30, 2016, 2015 and 2014, 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, 2016 and 2015, 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 In March 2016, the FASB issued ASU No. 2016-09,”Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update includes provisions intended to simplify various aspects of accounting for share-based compensation. ASU No. 2016-09 will take effect for public companies for the annual periods beginning after December 15, 2016. The Company is currently assessing the potential impact of ASU No. 2016-09 on the Company’s financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which will require entities to present deferred tax assets and deferred tax liabilities as non-current in a classified balance sheet. The ASU simplified the current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current and non-current in a classified balance sheet. This standard is effective for annual periods and interim periods within those fiscal years, beginning after December 15, 2016 but permits entities to early adopt at the beginning of any interim or annual period. During the quarter ended December 31, 2015, the Company elected to early adopt ASU 2015-17 and applied the change retrospectively to all periods present. As a result, the Company presented all deferred assets and liabilities as non-current in its consolidated balance sheet. The adoption of this ASU did not result in a reclassification of the Company’s net deferred tax assets and liabilities as of June 30, 2015. As of June 30, 2016, there was no impact on the Company’s results of operations as a result of the adoption of ASU No. 2015-17 The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supercedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2017, as deferred including interim periods within the reporting period and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The Company is currently evaluating the effect that this ASU will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on it ongoing financial reporting. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. It is effective for annual reporting periods beginning after December 15, 2016. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2016 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 2016 or 2015, 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. During February 2016, FAS issued ASU 2016-02, Leases (Topic 842). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based upon the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Lease with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new guidance will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and is applied retrospectively. Early adoption is permitted. The Company is currently in the process of assessing the impact the adoption of this guidance will have on the Company’s consolidated financial statements.
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 SIGNIFICA30

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Estimated Useful Life in Years for Property and Equipment	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	Revenue Recognition The Company’s patient fee revenues, net of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2016, 2015 and 2014 are summarized in the following table. For the Year Ended June 30, 2016 2015 2014 Commercial Insurance/ Managed Care $ 4,659,322 $ 4,398,589 $ 4,217,088 Medicare/Medicaid 1,182,552 1,187,690 1,443,020 Workers' Compensation/Personal Injury 20,888,856 15,978,243 13,369,956 Other 6,255,079 6,589,076 5,277,128 Patient Fee Revenue, net of contractual allowances and discounts 32,985,809 28,153,598 24,307,192 Provision for Bad Debts (14,539,786 ) (12,770,249 ) (10,333,082 ) Net Patient Fee Revenue $ 18,446,023 $ 15,383,349 $ 13,974,110
Earnings Per Share	Earnings Per Share June 30, 2016 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 15,724,625 $ 14,702,834 $ 260,230 Denominator: Weighted average shares outstanding 6,050,893 6,050,893 382,513 Basic income per common share $ 2.60 $ 2.43 $ 0.68 Diluted Denominator: Weighted average shares outstanding 6,050,893 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,178.397 382,513 Diluted income per common share $ 2.38 $ 0.68 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

NOTE 3 - ACCOUNTS RECEIVABLE,31

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Tables)	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Total Facilities	Management and Other Fees Receivable The following table sets forth the number of our facilities for the years ended June 30, 2016, 2015 and 2014. For The Year Ended June 30, 2016 2015 2014 Total Facilities Owned or Managed (at Beginning of Year) 24 24 24 Facilities Added by: Acquisition 1 — — Internal development — — 1 Managed Facilities Closed — — (1 ) Total Facilities Owned or Managed (at End of Year) 25 24 24

NOTE 4 - COSTS AND ESTIMATED 32

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables)	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Costs and Estimated Earnings on Uncompleted Contracts	Information relating to uncompleted contracts as of June 30, 2016 and 2015 is as follows: As of June 30, 2016 2015 Costs incurred on uncompleted contracts $ 893,976 $ 1,861,350 Estimated earnings 491,476 1,371,093 1,385,452 3,232,443 Less: Billings to date 1,592,075 2,693,000 $ (206,623 ) $ 539,443
Costs and Estimated Earnings	Included in the accompanying consolidated balance sheets under the following captions: As of June 30, 2016 2015 Costs and estimated earnings in excess of billings on uncompleted contracts $ — $ 681,660 Less: Billings in excess of costs and estimated earnings on uncompleted contracts 206,623 142,217 $ (206,623 ) $ 539,443

NOTE 5 - INVENTORIES (Tables)

NOTE 5 - INVENTORIES (Tables)	12 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories included in the accompanying consolidated balance sheets consist of: As of June 30, 2016 2015 Purchased parts, components and supplies $ 1,862,605 $ 2,043,411 Work-in-process 211,695 148,438 $ 2,074,300 $ 2,191,849

NOTE 6 - PROPERTY AND EQUIPME34

NOTE 6 - PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment, at cost, less accumulated depreciation and amortization, at June 30, 2016 and 2015, is comprised of: As of June 30, 2016 2015 Diagnostic equipment under capital leases $ 620,307 $ 620,307 Diagnostic equipment 19,213,472 17,396,797 Research, development and demonstration equipment 3,904,846 3,580,224 Machinery and equipment 2,069,055 2,069,055 Furniture and fixtures 2,949,824 2,550,627 Leasehold improvements 5,616,143 4,502,915 Building 939,614 939,614 35,313,261 31,659,539 Less: Accumulated depreciation and amortization 20,800,555 18,758,344 $ 14,512,706 $ 12,901,195

NOTE 7 - OTHER INTANGIBLE ASS35

NOTE 7 - OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intagible Assets - Net	Other intangible assets, net of accumulated amortization, at June 30, 2016 and 2015 are comprised of: As of June 30, 2016 2015 Capitalized software development costs $ 7,004,847 $ 7,004,847 Patents and copyrights 4,571,821 4,547,545 Non-competition agreements 4,100,000 4,100,000 Customer relationships 3,800,000 3,800,000 19,476,668 19,452,392 Less: Accumulated amortization 11,757,310 10,502,232 $ 7,719,358 $ 8,950,160
Schedule Of Other Intangle Assets	Information related to the above intangible assets for the years ended June 30, 2016, 2015 and 2014 is as follows: As of June 30, 2016 2015 2014 Balance – Beginning of Year $ 8,950,160 $ 10,508,843 $ 11,904,248 Amounts capitalized 113,072 139,534 214,211 Software or patents written off (88,796 ) (413,589 ) (250,523 ) Amortization (1,255,078 ) (1,284,628 ) (1,359,093 ) Balance – End of Year $ 7,719,358 $ 8,950,160 $ 10,508,843
Amortization of Other Intangible Assets	The estimated amortization of other intangible assets for the five years ending June 30, 2021 and thereafter is as follows: For the Years Ending June 30, Total Patents and Copyrights Capitalized Software Development Costs Non- competition Customer Relation-ships 2017 $ 1,232,261 $ 196,547 $ 260,000 $ 585,714 $ 190,000 2018 1,155,571 206,524 173,333 585,714 190,000 2019 988,324 212,610 — 585,714 190,000 2020 791,112 210,635 — 390,477 190,000 2021 393,075 203,075 — — 190,000 Thereafter 3,159,015 942,348 — — 2,216,667 $ 7,719,358 $ 1,971,739 $ 433,333 $ 2,147,619 $ 3,166,667

NOTE 8 - CAPITAL STOCK (Tables)

NOTE 8 - CAPITAL STOCK (Tables)	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Stock Option Activity and Exercise Prices	Options Stock option activity and weighted average exercise prices under these plans and grants for the years ended June 30, 2016, 2015 and 2014 was as follows: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, June 30, 2013 6,610 29.00 — Granted — — — Exercised — — — Forfeited / Expired (6,610 ) 29.00 Outstanding, June 30, 2014 — — — Granted — — — Exercised — — — Forfeited / Expired — — — Outstanding, June 30, 2015 — — — Outstanding, June 30, 2016 — — — Exercisable at: June 30, 2014 — $ — June 30, 2015 — $ — June 30, 2016 — $ —

NOTE 9 - CONTROLLING AND NONC37

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS (Tables)	12 Months Ended
	Jun. 30, 2016
Noncontrolling Interest [Abstract]
Class A And B Members' Equity (HDM Acquisition)	Amount of each class of HDM members’ equity as of June 30, 2016, 2015 and 2014 June 30, 2016 June 30, 2015 June 30, 2014 Class A Member Class B Members Class A Member Class B Members Class A Member Class B Members Opening Members’ Equity $ 10,752,169 $22,043,621 $ 17,659,698 $ 21,113,266 $ 19,526,475 $ 20,763,830 Share of Net Income 2,886,006 13,229,621 1,988,915 5,704,999 2,266,473 4,566,186 Buyout — — (4,971,094 ) — — — Distributions (5,241,600 ) (11,958,400) (3,925,350 ) (4,774,644 ) (4,133,250 ) (4,216,750 ) Ending Members’ Equity $ 8,396,575 $ 23,314,842 $ 10,752,169 $ 22,043,621 $ 17,659,698 $ 21,113,266
Class A And B Members' Equity (Imperial Management Services)	Amount of each class of Imperial members’ equity as of June 30, 2016, 2015 and 2014 June 30, 2016 June 30, 2015 June 30, 2014 Class A Member Class B Members Class A Member Class B Members Class A Member Class B Members Opening Members’ Equity $ 1,279,446 $ 15,000,446 $ 2,403,812 $ 11,079,317 $ 3,599,519 $ 7,772,781 Share of Net Income — — 405,634 3,921,129 536,913 3,306,536 Distributions (202,500 ) — (405,000 ) — (607,520 ) - Buyout 48,054 Redemption (1,125,000 ) — (1,125,000 ) — (1,125,100 ) - Ending Members’ Equity $ — $ 15,000,446 $ 1,279,446 $ 15,000,446 $ 2,403,812 $ $11,079,317

NOTE 10 - LONG-TERM DEBT, NOT38

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES (Tables)	12 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt, Notes Payable And Capital Leases	Long-term debt, notes payable and capital leases consist of the following: 2016 2015 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 $584,170 as of June 30, 2016. $392,096 $416,844 The revolving credit note was extended to September 2018. 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. - - 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. 3,749,978 7,149,986 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. 316,088 488,499 Other (including capital leases for property and equipment). 48,767 134,119 4,506,929 8,189,448 Less: Current portion 2,447,693 2,490,146 $2,059,236 $5,699,302
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, 2017 $ 2,447,693 2018 1,722,474 2019 30,746 2020 32,944 2021 35,416 Thereafter 237,656 $ 4,506,929

NOTE 11 - INCOME TAXES (Tables)

NOTE 11 - INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2016
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, 2016 2015 2014 Current: Federal $ 360,496 $ 114,683 $ 310,000 State — 29,313 24,093 Federal deferred taxes (4,368,901 ) (2,353,124 ) (2,280,044 ) State deferred taxes (278,866 ) (403,393 ) (402,361 ) $ (4,287,271 ) $ (2,612,521 ) $ (2,348,312 )
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, 2016 2015 2014 Taxes at federal statutory rate 35.0 % 35.0 % 34.0 % State and local income taxes (benefit), net of federal benefit 6.0 % 6.0 % 6.0 % Permanent differences 0.2 % 0.2 % (0.9 )% (Decrease) increase in the valuation allowance (89.8 )% (65.4 )% (65.5 )% True ups (0.0 )% (3.2 )% (2.8 )% Effective income tax rate (48.6 )% (27.4 )% (29.2 )%
Components Of Company's Deferred Tax Assets And Liabilities	Significant components of the Company's deferred tax assets and liabilities at June 30, 2016 and 2015 are as follows: June 30, 2016 2015 Deferred tax assets: Allowance for doubtful accounts $ 6,495,094 $ 6,607,107 Non-deductible accruals 962,867 115,346 Net operating carryforwards 44,011,554 49,170,420 Tax credits 6,770,099 6,751,692 Inventory 105,250 111,190 Property and equipment and depreciation — 1,093,401 58,344,864 63,849,156 Valuation allowance (45,302,504 ) (55,425,850 ) Total deferred tax assets 13,042,360 8,423,306 Capitalized software development costs (481,779 ) (510,492 ) Total deferred tax liabilities (481,779 ) (510,492 ) Net deferred tax asset $ 12,560,581 $ 7,912,814

NOTE 12 - OTHER CURRENT LIABI40

NOTE 12 - OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Other Current Liabilities	Included in other current liabilities are the following: June 30, 2016 2015 Accrued salaries, commissions and payroll taxes $ 3,188,665 $ 991,603 Accrued interest 45,479 117,480 Litigation accruals 545,029 521,149 Sales tax payable 2,402,448 2,538,340 Legal and other professional fees 384,810 344,060 Accounting fees 241,400 235,000 Self-funded health insurance reserve 392,178 510,150 Interest and penalty – sales tax 2,486,927 2,508,840 Other 1,139,857 486,011 $ 10,826,793 $ 8,252,633

NOTE 13 - COMMITMENTS AND CON41

NOTE 13 - COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Operating Lease Commitments	Leases Future minimum operating lease commitments consisted of the following at June 30, 2016: Year Ending June 30, Facilities And Equipment (Operating Lease) 2017 $ 3,839,635 2018 3,295,963 2019 2,704,324 2020 2,178,791 2021 1,848,522 Thereafter 6,733,116 Total minimum obligations $ 20,600,351

NOTE 14 - OTHER INCOME (EXPEN42

NOTE 14 - OTHER INCOME (EXPENSE) (Tables)	12 Months Ended
	Jun. 30, 2016
Other Income and Expenses [Abstract]
Other Income (Expense) - Net	Other income (expense) consists of: For the Years Ended June 30, 2016 2015 2014 Loss on disposition of equipment $ — $ — $ (657,350 ) Litigation settlement — — 13,586 Gain on extinguishment of debt — 394,797 — Gain on sale of equipment — — 40,000 Other income (expense) 190,560 13 (4,835 ) $ 190,560 $ 394,810 $ (608,599 )

NOTE 17 - SEGMENT AND RELATED43

NOTE 17 - SEGMENT AND RELATED INFORMATION (Tables)	12 Months Ended
	Jun. 30, 2016
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 2016: Net revenues from external customers $ 10,783,618 $ 62,584,592 $ 73,368,210 Intersegment net revenues * $ 2,140,000 $ — $ 2,140,000 (Loss) Income from operations $ (1,979,497 ) $ 16,335,113 $ 14,355,616 Depreciation and amortization $ 320,843 $ 2,976,446 $ 3,297,289 Compensatory element of stock issuances $ 2,006 $ — $ 2,006 Total identifiable assets $ 28,241,501 $ 56,646,105 $ 84,887,606 Capital expenditures $ 437,695 $ 387,593 $ 825,288 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
Export Product Sales	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, 2016 2015 2014 United Arab Emirates -% -% 29.8 % Switzerland — 2.2 12.4 Canada 0.3 0.1 — England 18.5 — — Germany .6 71.9 — Puerto Rico .2 — — Libya — — 0.2 19.6 % 74.2 % 42.4 %
Foreign Service and Repair Fees	Foreign Service and Repair Fees 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, 2016 2015 2014 Spain 0.3 % 1.0 % 1.0 % Puerto Rico 1.5 1.2 1.1 Switzerland 0.3 0.7 1.1 Germany 1.5 0.7 0.4 England 0.5 1.7 2.6 Holland — 0.6 1.3 Canada 0.3 0.1 0.2 Greece 0.2 0.2 — Australia 1.2 1.2 1.1 5.8 % 7.4 % 8.8 %

NOTE 18 - ALLOWANCE FOR DOUBT44

NOTE 18 - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables)	12 Months Ended
	Jun. 30, 2016
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, 2016, 2015 and 2014, respectively: Description Balance June 30, 2015 Additions Deductions Balance June 30, 2016 Accounts receivable $ 362,362 $ (1) $ 78,083 $ 84,279 Management and other fees receivable 13,271,651 (1) 673,856 — 13,945,507 Management and other fees receivable - related medical practices 403,047 — 10,542 392,505 Medical receivables 15,459,156 (1)14,539,786 12,547,160 17,451,782 Description Balance June 30, 2014 Additions Deductions Balance June 30, 2015 Accounts receivables $ 257,362 $ (1)105,000 $ $ 62,362 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 Notes receivable 65,000 — 65,000 —

NOTE 19 - QUARTERLY FINANCIAL45

NOTE 19 - QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Jun. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Quarterly Financial Data	Quarterly Financial Data (Unaudited) (000’s omitted, except per share data) September 30, 2015 December 31, 2015 March 31, 2016 June 30, 2016 Total Total Revenues – Net $ 17,611 $ 18,369 $ 18,619 $ 18,769 $ 73,368 Total Costs and Expenses 13,996 14,144 14,522 16,351 59,013 Net Income 3,465 4,104 3,881 7,346 18,796 Basic Net Income Per Common Share Available to Common Stockholders $ 0.44 $ 0.54 $ 0.46 $ 0.99 $ 2.43 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.43 $ 0.53 $ 0.45 $ 0.97 $ 2.38 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

NOTE 20 - BUSINESS COMBINATIO46

NOTE 20 - BUSINESS COMBINATIONS (Tables)	12 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Acquisition	Acquisitions On June 30, 2016, the Company purchased 100% interest in TK2 Equipment Management, LLC and Turnkey Services of New York, LLC. The consideration and net assets acquired is as follows: Cash Paid $ 4,223,567 Net assets at Fair Value 2,861,507 Goodwill $ 1,555,060
Proforma Results	Pro forma Results Unaudited Pro forma results of operations assumes that the acquisitions were made at the beginning of the year prior to 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, 2016 Year ended June 30, 2015 Year ended June 30, 2014 Total Revenues – Net $ 73,368,210 $ 69,050,996 $ 68,505,477 Net Income - Controlling Interests $ 16,088,263 $ 13,175,717 $ 10,456,315 Net Income Available to Common Stockholders $ 15,042,842 $ 12,319,511 $ 9,776,301 Net Income Available to Class A Non-Voting Preferred Stockholders $ 779,173 $ 638,147 $ 506,828 Net Income Available to Class C Common Stockholders $ 266,248 $ 218,059 $ 173,186 Basic Net Income Per Common Share Available to Common Stockholders $ 2.49 $ 2.04 $ 1.63 Diluted Net Income Per Common Share Available to Common Stockholders $ 2.43 $ 1.99 $ 1.59 Basic and Diluted Income Per Share - Common C $ 0.70 $ 0.57 $ 0.45 Weighted Average Basic Shares Outstanding 6,050,893 6,050,632 6,009,822 Weighted Average Diluted Shares Outstanding 6,178,397 6,178,136 6,137,326 Weighted Average Basic and Diluted Shares Outstanding - Class C Common 382,513 382,513 382,513

NOTE 2 - SUMMARY OF SIGNIFICA47

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful Life in Years - (Details)	12 Months Ended
	Jun. 30, 2016
Diagnostic Equipment Under Capital Lease | Weighted Average
Property, Plant and Equipment	2 years 5 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 SIGNIFICA48

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Patient Fee Revenue Recognition - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Patient fee revenue, net of contractual allowances and discounts	$ 32,985,809	$ 28,153,598	$ 24,307,192
Less: Patient fee revenue provision for bad debts	(14,539,786)	(12,770,249)	(10,333,082)
Net patient fee revenue	18,446,023	15,383,349	13,974,110
Commercial Insurance / Managed Care
Patient fee revenue, net of contractual allowances and discounts	4,659,322	4,398,589	4,217,088
Medicare/Medicaid
Patient fee revenue, net of contractual allowances and discounts	1,182,552	1,187,690	1,443,020
Workers Compensation/Personal Injury
Patient fee revenue, net of contractual allowances and discounts	20,888,856	15,978,243	13,369,956
Other
Patient fee revenue, net of contractual allowances and discounts	$ 6,255,079	$ 6,589,076	$ 5,277,128

NOTE 2 - SUMMARY OF SIGNIFICA49

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Basic Numerator: Net income available to common stockholders	$ 15,724,625	$ 12,910,651	$ 10,396,130
Basic Denominator: Weighted average shares outstanding	6,050,893	6,050,632	6,009,822
Basic Income Per Common Share	$ 2.6	$ 2.13	$ 1.73
Common Shares
Basic Numerator: Net income available to common stockholders	$ 14,702,834	$ 12,071,670	$ 9,720,030
Basic Denominator: Weighted average shares outstanding	6,050,893	6,050,632	6,009,822
Basic Income Per Common Share	$ 2.43	$ 2	$ 1.62
Class C Common Stock	127,504	127,504	127,504
Total Denominator for diluted earnings per share	6,178,397	6,178,136	6,137,326
Diluted Income Per Common Share	$ 2.38	$ 1.95	$ 1.58
Class C Common Stock
Basic Numerator: Net income available to common stockholders	$ 260,230	$ 213,672	$ 172,189
Basic Denominator: Weighted average shares outstanding	382,513	382,513	382,513
Basic Income Per Common Share	$ 0.68	$ 0.56	$ 0.45
Class C Common Stock
Total Denominator for diluted earnings per share	382,513	382,513	382,513
Diluted Income Per Common Share	$ 0.68	$ 0.56	$ 0.45
Total
Basic Numerator: Net income available to common stockholders	$ 15,724,625	$ 12,910,651	$ 10,396,130
Basic Denominator: Weighted average shares outstanding	6,050,893	6,050,632	6,009,822
Basic Income Per Common Share	$ 2.6	$ 2.13	$ 1.73

NOTE 3 - ACCOUNTS RECEIVABLE,50

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE-Total Facilities (Details)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
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	24
Managed Facilities Added Acquisition	1	0	0
Managed Facilities Added By Internal development	0	0	1
Managed Facilities Closed During year	0	0	(1)
Total Facilities Owned or Managed (at End of Year)	25	24	24

NOTE 4 - COSTS AND ESTIMATED 51

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS - Costs, Earnings, Billings, Uncompleted Contracts - (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Notes to Financial Statements
Costs incurred on uncompleted contracts	$ 893,976	$ 1,861,350
Estimated earnings	491,476	1,371,093
Less: billings to date	1,385,452	3,232,443
Unbilled contracts receivable	1,592,075	2,693,000
Uncompleted Contracts	$ (206,623)	$ 539,443

NOTE 4 - COSTS AND ESTIMATED 52

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS - Costs, Billings and Uncompleted Contracts (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Notes to Financial Statements
Costs and estimated earnings in excess of billings on uncompleted contracts		$ 681,660
Less: Billings in excess of costs and estimated earnings on uncompleted contracts	206,623	142,217
Uncompleted Contracts	$ (206,623)	$ 539,443

NOTE 5 - INVENTORIES - Inventor

NOTE 5 - INVENTORIES - Inventories (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Inventory Disclosure [Abstract]
Purchased parts, components and supplies	$ 1,862,605	$ 2,043,411
Work-in-process	211,695	148,438
Inventories	$ 2,074,300	$ 2,191,849

NOTE 6 - PROPERTY AND EQUIPME54

NOTE 6 - PROPERTY AND EQUIPMENT - Property and Equipment (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Property and Equipment Before Accumulated depreciation and amortization	$ 35,313,261	$ 31,659,539
Less: Accumulated depreciation and amortization of property and equipment	20,800,555	18,758,344
Property and Equipment AfterAccumulated depreciation and amortization	14,512,706	12,901,195
Diagnostic Equipment under capital leases
Property and Equipment Before Accumulated depreciation and amortization	620,307	620,307
Diagnostic Equipment
Property and Equipment Before Accumulated depreciation and amortization	19,213,472	17,396,797
Research, development and demonstration equipment [Member]
Property and Equipment Before Accumulated depreciation and amortization	3,904,846	3,580,224
machinery and equipment [Member]
Property and Equipment Before Accumulated depreciation and amortization	2,069,055	2,069,055
Furniture and Fixtures
Property and Equipment Before Accumulated depreciation and amortization	2,949,824	2,550,627
Leasehold Improvements [Member]
Property and Equipment Before Accumulated depreciation and amortization	5,616,143	4,502,915
Building
Property and Equipment Before Accumulated depreciation and amortization	$ 939,614	$ 939,614

NOTE 7 - OTHER INTANGIBLE ASS55

NOTE 7 - OTHER INTANGIBLE ASSETS - Other Intagible Assets Net of Amoritization (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software development costs	$ 7,004,847	$ 7,004,847
Patents and copyrights	4,571,821	4,547,545
Non-competition agreements	4,100,000	4,100,000
Customer Relationships	3,800,000	3,800,000
Less: Accumulated amortization	11,757,310	10,502,232
Other intangible assets - net	$ 7,719,358	$ 8,950,160

NOTE 7 - OTHER INTANGIBLE ASS56

NOTE 7 - OTHER INTANGIBLE ASSETS - Schedule Of Intangle Assets - (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Balance - Beginning of Year	$ 8,950,160	$ 10,508,843	$ 11,904,248
Amounts capitalized	113,072	139,534	214,211
Software or patents written off	(88,796)	(413,589)	(250,523)
Amortization	(1,255,078)	(1,284,628)	(1,359,093)
Balance - End of Year	$ 7,719,358	$ 8,950,160	$ 10,508,843

NOTE 7 - OTHER INTANGIBLE ASS57

NOTE 7 - OTHER INTANGIBLE ASSETS - Forward Looking Schedule of Other Intangible Assets - (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
2,017	$ 1,232,261
2,018	1,155,571
2,019	988,324
2,020	791,112
2,021	393,075
Thereafter	3,159,015
Other intangible assets - net	7,719,358	$ 8,950,160
Patents and Copyrights
2,017	196,547
2,018	206,524
2,019	212,610
2,020	210,635
2,021	203,075
Thereafter	942,348
Other intangible assets - net	1,971,739
Capitalized software development costs
2,017	260,000
2,018	173,333
2,019
2,020
2,021
Thereafter
Other intangible assets - net	433,333
Non-competition agreements
2,017	585,714
2,018	585,714
2,019	585,714
2,020	390,477
2,021
Thereafter
Other intangible assets - net	2,147,619
Customer Relationships
2,017	190,000
2,018	190,000
2,019	190,000
2,020	190,000
2,021	190,000
Thereafter	2,216,667
Other intangible assets - net	$ 3,166,667

NOTE 8 - CAPITAL STOCK - Stock

NOTE 8 - CAPITAL STOCK - Stock Option Activity - (Details) - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Number of Options
Options Outstanding, beginning balance			6,610
Shares Granted
Shares Exercised
Shares Expired			6,610
Options Outstanding, ending balance
Weighted Average Exercise Price
Options Outstanding, beginning balance			$ 29
Shares Granted
Forfeited / Expired
Options Outstanding, ending balance
Aggregate Intrinsic Value
Outstanding, beginning balance
Granted
Exercised

NOTE 9 - CONTROLLING AND NONC59

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - HDM Members Equity (Details) - HDM Equity - USD ($)	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Class A Members
Opening Members Equity	$ 10,752,169	$ 17,659,698	$ 19,526,475
Share of Net Income	2,886,006	1,988,915	2,266,473
Buyout		(4,971,094)
Distributions	(5,241,600)	(3,925,350)	(4,133,250)
Ending Members Equity	8,396,575	10,752,169	17,659,698
Class B Common Stock
Opening Members Equity	22,043,621	21,113,266	20,763,830
Share of Net Income	13,229,621	5,704,999	4,566,186
Buyout
Distributions	(11,958,400)	(4,774,644)	(4,216,750)
Ending Members Equity	$ 23,314,842	$ 22,043,621	$ 21,113,266

NOTE 9 - CONTROLLING AND NONC60

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - Imperial Members Equity (Details) - Imperial Equity - USD ($)	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Class A Members
Opening Members Equity	$ 1,279,446	$ 2,403,812	$ 3,599,519
Share of Net Income		405,634	536,913
Distributions	(202,500)	(405,000)	(607,520)
Buyout	48,054
Redemption	(1,125,000)	(1,125,000)	(1,125,100)
Ending Members Equity		1,279,446	2,403,812
Class B Common Stock
Opening Members Equity	15,000,446	11,079,317	7,772,781
Share of Net Income		3,921,129	3,306,536
Distributions
Buyout
Redemption
Ending Members Equity	$ 15,000,446	$ 15,000,446	$ 11,079,317

NOTE 10 - LONG-TERM DEBT, NOT61

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, 2016	Jun. 30, 2015
Current portion of Long Term Debt, Notes Payable and Capital Leases	$ 2,447,693	$ 2,490,146
Long Term Debt, Notes Payable and Capital Leases less Current Portion	2,059,236	5,699,302
Long Term Note 1
Long Term Debt, Notes Payable and Capital Leases	$ 392,096	416,844
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 $584,170 as of June 30, 2016.
Long Term Note 2
Long Term Debt, Notes Payable and Capital Leases	$ 0	0
Long Term Debt, Notes Payable and Capital Leases Description	The revolving credit note was extended to September 2018. 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	$ 3,749,978	7,149,986
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	$ 316,088	488,499
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	$ 48,767	$ 134,119
Long Term Debt, Notes Payable and Capital Leases Description	Other (including capital leases for property and equipment).

NOTE 10 - LONG-TERM DEBT, NOT62

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE & CAPITAL LEASES - Maturities Of Long-Term Debt Over 5 Years - (Details)	Jun. 30, 2016USD ($)
Debt Disclosure [Abstract]
2,017	$ 2,447,693
2,018	1,722,474
2,019	30,746
2,020	32,944
2,021	35,416
Thereafter	237,656
Long-Term Debt Over Five Years and Thereafter	$ 4,506,929

NOTE 11 - INCOME TAXES - Compon

NOTE 11 - INCOME TAXES - Components Of Current Benefit For Income Taxes - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Current: Federal	$ 360,496	$ 114,683	$ 310,000
Current: State		29,313	24,093
Federal deferred taxes	(4,368,901)	(2,353,124)	(2,280,044)
State deferred taxes	(278,866)	(403,393)	(402,361)
Benefit for Income Taxes	$ (4,287,271)	$ (2,612,521)	$ (2,348,312)

NOTE 11 - INCOME TAXES - Reconc

NOTE 11 - INCOME TAXES - Reconciliation of federal statutory income tax rate (Details)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Note 11 - Income Taxes - Reconciliation Of Federal Statutory Income Tax Rate Details
Taxes at federal statutory rate	3500.00%	3500.00%	3400.00%
State and local income taxes (benefit), net of federal benefit	600.00%	600.00%	600.00%
Permanent differences (taxes)	20.00%	20.00%	90.00%
(Decrease) increase in the valuation allowance	8980.00%	(6540.00%)	(6550.00%)
True ups		(320.00%)	(280.00%)
Effective income tax rate	(4860.00%)	(2740.00%)	(2920.00%)

NOTE 11 - INCOME TAXES - Signif

NOTE 11 - INCOME TAXES - Significant Components Of Company's Deferred Tax Assets And Liabilities - (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Deferred Tax Assets:
Allowance for doubtful accounts	$ 6,495,094	$ 6,607,107
Non Deductible Accruals	962,867	115,346
Net operating carryforwards	44,011,554	49,170,420
Tax credits	6,770,099	6,751,692
Inventory	105,250	111,190
Property and equipment and depreciation		1,093,401
Deferred Tax Assets - gross	58,344,864	63,849,156
Valuation allowance	(45,302,504)	(55,425,850)
Deferred tax assets - net	13,042,360	8,423,306
Deferred tax liabilities:
Capitalized software development costs	(481,779)	(510,492)
Total deferred tax liabilities	(481,779)	(510,492)
Net deferred tax liabilities	$ 12,560,581	$ 7,912,814

NOTE 12 - OTHER CURRENT LIABI66

NOTE 12 - OTHER CURRENT LIABILITIES - Other Current Liabilities - (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Payables and Accruals [Abstract]
Accrued salaries, commissions and payroll taxes	$ 3,188,665	$ 991,603
Accrued interest	45,479	117,480
Litigation accruals	545,029	521,149
Sales tax payable	2,402,448	2,538,340
Legal and other professional fees	384,810	344,060
Accounting fees	241,400	235,000
Self-funded health insurance reserve	392,178	510,150
Interest and penalty - sales tax	2,486,927	2,508,840
Other	1,139,857	486,011
Other current liabilities	$ 10,826,793	$ 8,252,633

NOTE 13 - COMMITMENTS AND CON67

NOTE 13 - COMMITMENTS AND CONTINGENCIES - Future Minimums Operating Lease Commitments - (Details)	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Facilities And Equipment (Operating Lease) Due in 2017	$ 3,839,635
Facilities And Equipment (Operating Lease) Due in 2018	3,295,963
Facilities And Equipment (Operating Lease) Due in 2019	2,704,324
Facilities And Equipment (Operating Lease) Due in 2020	2,178,791
Facilities And Equipment (Operating Lease) Due in 2021	1,848,522
Facilities And Equipment (Operating Lease) Due Thereafter	6,733,116
Total minimum obligations	$ 20,600,351

NOTE 14 - OTHER INCOME (EXPEN68

NOTE 14 - OTHER INCOME (EXPENSE) - Other Income (Expense) - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Other Income and Expenses [Abstract]
Loss on disposition of equipment			$ (657,350)
Litigation settlement			13,586
Gain on extinguishment of debt		394,797
Gain on sale of equipment			40,000
Other Income - net	(2,439)	13	(4,835)
Other income (expense) - net	$ 190,560	$ 394,810	$ (608,599)

NOTE 17 - SEGMENT AND RELATED69

NOTE 17 - SEGMENT AND RELATED INFORMATION - Sumarized Segments - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Net revenues from external customers	$ 73,368,210	$ 69,050,996	$ 68,505,477
Intersegment net revenues	2,140,000	2,005,000	1,963,750
Income from operations	14,355,616	12,899,877	12,302,669
Depreciation and amortization	3,297,289	3,544,470	3,817,205
Compensatory element of stock issuances	2,006	53,200	223,000
Total identifiable assets	84,887,606	76,492,077	76,789,843
Capital expenditures	825,288	270,842	834,908
Manufacturing And Servicing Of Medical Equipment
Net revenues from external customers	10,783,618	11,480,295	12,070,563
Intersegment net revenues	2,140,000	2,005,000	1,963,750
Income from operations	(1,979,497)	504,895	468,793
Depreciation and amortization	320,843	306,183	410,728
Compensatory element of stock issuances	2,006	53,200	223,000
Total identifiable assets	28,241,501	18,997,142	18,093,789
Capital expenditures	437,695	209,534	234,275
Management of Diagnostic Imaging Centers
Net revenues from external customers	62,584,592	57,570,701	56,434,914
Intersegment net revenues
Income from operations	16,335,113	12,394,982	11,833,876
Depreciation and amortization	2,976,446	3,238,287	3,406,477
Compensatory element of stock issuances
Total identifiable assets	56,646,105	57,494,935	58,696,054
Capital expenditures	$ 387,593	$ 61,308	$ 600,633

NOTE 17 - SEGMENT AND RELATED70

NOTE 17 - SEGMENT AND RELATED INFORMATION - Foreign Product Sales - (Details)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Foreign Product Sales	19.60%	74.20%	42.40%
United Arab Emerites
Foreign Product Sales			29.80%
Switzerland
Foreign Product Sales		2.20%	12.40%
Canada
Foreign Product Sales	0.30%	0.10%
England
Foreign Product Sales	18.50%
Germany
Foreign Product Sales	0.60%	71.90%
Puerto Rico
Foreign Product Sales	0.20%
Libya
Foreign Product Sales			0.20%

NOTE 17 - SEGMENT AND RELATED71

NOTE 17 - SEGMENT AND RELATED INFORMATION - Foreign Service and Repair Fees - (Details)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Foreign Service and Repair fees	5.80%	7.40%	8.80%
Spain
Foreign Service and Repair fees	0.30%	1.00%	1.00%
Puerto Rico
Foreign Service and Repair fees	1.50%	1.20%	1.10%
Switzerland
Foreign Service and Repair fees	0.30%	0.70%	1.10%
Germany
Foreign Service and Repair fees	1.50%	0.70%	0.40%
England
Foreign Service and Repair fees	0.50%	1.70%	2.60%
Holland
Foreign Service and Repair fees		0.60%	1.30%
Canada
Foreign Service and Repair fees	0.30%	0.10%	0.20%
Greece
Foreign Service and Repair fees	0.20%	0.20%
Australia
Foreign Service and Repair fees	1.20%	1.20%	1.10%

NOTE 18 - ALLOWANCE FOR DOUBT72

NOTE 18 - ALLOWANCE FOR DOUBTFUL ACCOUNTS - Allowance For Doubtful Accounts (Details) (USD $) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Receivables from equipment sales and service contracts
Beginning Balance	$ 362,362	$ 257,362	$ 257,362
Additions (Included in provision for bad debts)		105,000
Deductions	78,083
Ending Balance	284,279	362,362	257,362
Management fee receivable
Beginning Balance	13,271,651	10,901,619	9,095,320
Additions (Included in provision for bad debts)	673,856	2,370,032	1,806,299
Deductions
Ending Balance	13,945,507	13,271,651	10,901,619
Management fee receivable from related medical practices
Beginning Balance	403,047	403,047	403,047
Additions (Included in provision for bad debts)
Deductions	10,542
Ending Balance	392,505	403,047	403,047
Medical receivables
Beginning Balance	15,459,156	14,032,067	2,584,669
Additions (Included in provision for bad debts)	14,539,786	12,770,249	10,333,082
Deductions	12,547,160	11,343,160	(1,114,316)
Ending Balance	17,451,782	15,459,156	14,032,067
Advance and notes to related parties
Beginning Balance		202,379	202,379
Additions (Included in provision for bad debts)
Deductions		202,379
Ending Balance			202,379
Notes Receivable from MRI Customers
Beginning Balance			65,000
Additions (Included in provision for bad debts)
Deductions			65,000
Ending Balance

NOTE 19 - QUARTERLY FINANCIAL73

NOTE 19 - QUARTERLY FINANCIAL DATA (UNAUDITED) - Unaudited Quarterly Financial Tables- (Details) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Total Revenues - Net									$ 73,368,210	$ 69,050,996	$ 68,505,477
Total Costs and Expenses									59,012,594	56,151,119	56,202,808
Net Income									$ 18,795,517	$ 15,430,383	$ 13,396,769
Basic Net Income Per Common Share Available to Common Stockholders									$ 2.6	$ 2.13	$ 1.73
Quarterly Financial Data [Member]
Total Revenues - Net	$ 18,769,000	$ 18,619,000	$ 18,369,000	$ 17,611,000	$ 16,878,000	$ 17,096,000	$ 17,092,000	$ 17,985,000	$ 73,368,000	$ 69,051,000
Total Costs and Expenses	16,351,000	14,522,000	14,144,000	13,996,000	13,680,000	14,430,000	13,494,000	14,547,000	59,013,000	56,151,000
Net Income	$ 7,346,000	$ 3,881,000	$ 4,104,000	$ 3,465,000	$ 6,200,000	$ 2,519,000	$ 3,455,000	$ 3,256,000	$ 18,796,000	$ 15,430,000
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.99	$ 0.46	$ 0.54	$ 0.44	$ 0.89	$ 0.31	$ 0.41	$ 0.39	$ 2.43	$ 2
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.97	$ 0.45	$ 0.53	$ 0.43	$ 0.86	$ 0.31	$ 0.4	$ 0.39	$ 2.38	$ 1.95

NOTE 20 - BUSINESS COMBINATIO74

NOTE 20 - BUSINESS COMBINATIONS - Acquisition (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Goodwill	$ 3,322,158	$ 1,767,098
TK2 Equipment Management
Cash Paid	4,223,567
Net assets at Fair Value	2,861,507
Goodwill	$ 1,555,060

NOTE 20 - BUSINESS COMBINATIO75

NOTE 20 - BUSINESS COMBINATIONS - Proforma Results (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Total Revenues - Net	$ 73,368,210	$ 69,050,996	$ 68,505,477
TK2 Equipment Management, LLP Pro forma
Basic Net Income Per Common Share	$ 2.6	$ 2.13	$ 1.73
Weighted Average Shares Outstanding - Basic	6,050,893	6,050,632	6,009,822
Common Shares
TK2 Equipment Management, LLP Pro forma
Basic Net Income Per Common Share	$ 2.43	$ 2	$ 1.62
Diluted Net Income Per Common Share	$ 2.38	$ 1.95	$ 1.58
Weighted Average Shares Outstanding - Basic	6,050,893	6,050,632	6,009,822
Weighted Average Shares Outstanding - Diluted	6,178,397	6,178,136	6,137,326
Class C Common Stock
TK2 Equipment Management, LLP Pro forma
Basic Net Income Per Common Share	$ 0.68	$ 0.56	$ 0.45
Diluted Net Income Per Common Share	$ 0.68	$ 0.56	$ 0.45
Weighted Average Shares Outstanding - Basic	382,513	382,513	382,513
Weighted Average Shares Outstanding - Diluted	382,513	382,513	382,513
TK2 Equipment Management, LLC
Total Revenues - Net	$ 73,368,210	$ 69,050,996	$ 68,505,477
TK2 Equipment Management, LLP Pro forma
Net Income (TK2 Equipment Management, LLP Pro forma)	16,088,263	13,175,717	10,456,315
TK2 Equipment Management, LLC | Common Shares
TK2 Equipment Management, LLP Pro forma
Net Income (TK2 Equipment Management, LLP Pro forma)	$ 15,042,842	$ 12,319,511	$ 9,776,301
Basic Net Income Per Common Share	$ 2.49	$ 2.04	$ 1.63
Diluted Net Income Per Common Share	$ 2.43	$ 1.99	$ 1.59
Weighted Average Shares Outstanding - Basic	6,050,893	6,050,632	6,009,822
Weighted Average Shares Outstanding - Diluted	6,178,397	6,178,136	6,137,326
TK2 Equipment Management, LLC | Class C Common Stock
TK2 Equipment Management, LLP Pro forma
Net Income (TK2 Equipment Management, LLP Pro forma)	$ 266,248	$ 218,059	$ 173,186
Basic Net Income Per Common Share	$ 0.7	$ 0.57	$ 0.45
Diluted Net Income Per Common Share	$ 0.7	$ 0.57	$ 0.45
Weighted Average Shares Outstanding - Basic	382,513	382,513	382,513
Weighted Average Shares Outstanding - Diluted	382,513	382,513	382,513
TK2 Equipment Management, LLC | Class A Non-Voting Preferred
TK2 Equipment Management, LLP Pro forma
Net Income (TK2 Equipment Management, LLP Pro forma)	$ 779,173	$ 638,147	$ 506,828

NOTE 1 - DESCRIPTION OF BUSIN76

NOTE 1 - DESCRIPTION OF BUSINESS, LIQUIDITY AND CAPITAL RESOURCES (Details Narrative)	Jun. 30, 2016USD ($)	Jul. 01, 2015	Jun. 30, 2015	Mar. 05, 2013RecumbentMRIScanners	May 01, 2011
Purchase % of equity in Turnkey Services of New York, LLC	100.00%
Purchase % of equity in TK2 Equipment Management, LLC	100.00%
Purchase amount by company for Turnkey Services of New York, LLC., and TK2 Equipment, LLC.	$ 4,223,567
Net assets attributed to Turnkey Services of New York, LLC., and TK2 Equipment, LLC.	$ 2,861,506
Contribution percent of its assets by Imperial (which were utilized in the business of Health Management Corporation of America) to HDM		100.00%
The ownership interest of Imperial Management Services after reorganization of newly expanded HDM (percent).		24.20%
The ownership interest of Health Management Corporation of America after reorganization of newly expanded HDM (percent).		45.80%
The ownership interest of the original investors of HDM after reorganization of newly expanded HDM (percent).		30.00%
Contribution by HMCA of all its assets and liabilities to Imperial Management Services, LLC (Imperial)					100.00%
Number of diagnostic imaging facilities managed by Imperial			11
Health Diagnostics Management LLC (HDM)
Stand-Up MRI scanners being managed by Health Diagnostics Management LLC				12
Recumbent MRI scanners being managed by Health Diagnostics Management LLC | RecumbentMRIScanners				2

NOTE 2 - SUMMARY OF SIGNIFICA77

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Jun. 30, 2016USD ($)shares	Jun. 30, 2015USD ($)shares	Jun. 30, 2014USD ($)shares
Maintenance and Repair Expenses	$ 1,113,000	$ 1,200,000	$ 1,037,000
Management Agreements with Company - Total Medical Practices	21
Management Agreements with Company - Related Medical Practices	3
Management Agreements with Company - Located in New York State	18
Advertising Costs	$ 535,000	894,000	889,000
Shipping and Handling Expense	$ 11,077	$ 9,293	$ 1,885
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 in excess of federally insured limits	$ 5,804,000
Federally insured limit (FDIC)	$ 250,000
Net revenues from related parties as a percentage of consolidated net revenues	10.00%	11.00%	11.00%
Net management fee receivables from the related medical practices as a percentage of the consolidated accounts receivable	12.00%	12.00%	12.00%
Diagnostic Imaging Facility
Contractual fees per month for services rendered minimum	$ 69,000
Contractual fees per month for services rendered maximum	277,000
Lease fee per month for medical equipment for managed centers	$ 2,000

NOTE 3 - ACCOUNTS RECEIVABLE,78

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - (Details Narrative)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
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	59.00%	54.00%	50.00%
Percentage of consolidated net revenue from management fees charged to related party medical practices	10.00%	11.00%	11.00%

NOTE 6 - PROPERTY AND EQUIPME79

NOTE 6 - PROPERTY AND EQUIPMENT- (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Accumulated depreciation and amortization of property and equipment	$ 20,800,555	$ 18,758,344
Cost and accumulated depreciation basis of retired assets that were fully depreciated		1,151,541
Property, Plant and Equipment [Member]
Depreciation and amortization of property and equipment	2,042,211	2,259,842	$ 2,458,113
Diagnostic Equipment Under Capital Lease
Depreciation and amortization of property and equipment	0	0	95,026
Accumulated depreciation and amortization of property and equipment	$ 620,307	$ 620,307	$ 620,307

NOTE 7 - OTHER INTANGIBLE ASS80

NOTE 7 - OTHER INTANGIBLE ASSETS - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Weighted average amortization period (years)	10 years 256 days
Patents and Copyrights
Amortization other intangible assets	$ 187,553	$ 183,272	$ 178,836
Capitalized software development costs
Amortization other intangible assets	291,810	325,642	407,876
Non-competition agreements
Amortization other intangible assets	585,714	585,714	585,714
Customer Relationships
Amortization other intangible assets	$ 190,000	$ 190,000	$ 186,667

NOTE 8 - CAPITAL STOCK - (Detai

NOTE 8 - CAPITAL STOCK - (Details Narrative) - shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Aug. 10, 2010	Apr. 23, 2010	Feb. 16, 2005	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 under 2010 Stock Bonus Plan	953,367
Shares issued under 2010 Stock Bonus Plan	146	5,000	46,708
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
Issuance of stock options for 2005 Stock Option Plan						80,000
Common Shares
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.
Terms of Conversion	Class C common stock is convertible into shares of common stock on a three-for-one basis.
Votes Per Share	The Common stock has 1 vote per share.
Class B Common Stock
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, 146 and 146 of such shares outstanding at June 30, 2016, 2015 and 2014, respectively.
Votes Per Share	The Class B common stock has 10 votes per share.
Class C Common Stock
Dividends Payable Nature	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.
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 Company's 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.
Votes Per Share	The Class C common stock has 25 votes per share.
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 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. 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).
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 NONC82

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - (Details Narrative)	12 Months Ended
	Jun. 30, 2016USD ($)	May 01, 2015USD ($)	Jan. 08, 2015USD ($)	May 01, 2014USD ($)	Mar. 31, 2013USD ($)	Mar. 05, 2013USD ($)MRICenter	Feb. 13, 2013	May 02, 2011USD ($)
Controlling Interest acquired by Company of Health Diagnostics Management, LLC, (HDM)							50.50%
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
Private Placement of Equity and Capital Raise (Imperial Management Services, LLC)								$ 6,000,000
HMCA ownership percentage of Imperial Management Services	100.00%							75.00%
Redemption of Class A Members Capital Contribution (Imperial)		$ 1,125,100		$ 1,125,100				$ 1,125,100
Company purchased remaining 50% balance in a management service company in New York Metropolitan area	$ 1,780,000
Class A Member | Health Diagnostics Management LLC (HDM)
Health Diagnostics Management (HDM) Class A Members ownership interest			60.40%				49.50%
Company purchase price for 20% ownership in Health Diagnostic Management, LLC ($)			$ 4,971,094
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
Private Placement
Private Placement Description (Imperial Manaagement Services, LLC)	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 2, 2016, May 1, 2015 and on May 1, 2014, the Company returned a portion of the Class A Members capital contribution in the amount of $1,125,000, $1,125,000 and $1,125,100, respectively. As of June 30, 2016, the Company's subsidiary, HMCA, now owns approximately 100% interest in Imperial Management Services.

NOTE 11 - INCOME TAXES - (Detai

NOTE 11 - INCOME TAXES - (Details Narrative) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Note 11 - Income Taxes - Details Narrative
Deferred Tax Asset	$ 13,042,360
Deferred Tax Liability	481,779
Net Operating Loss (NOL) Carryforwards Available to Offset Future Taxable Income	110,029,000
Reduction in valuation allowance	4,600,000
Research and Development Tax Credit Carryforwards	4,528,000
Alternate Minimum Tax Credits	1,118,000
NY State Tax Credit Carryforwards	1,112,000
Decrease in Valuation Allowance for Deferred Tax Assets	$ 10,123,000	$ 6,730,000

NOTE 13 - COMMITMENTS AND CON84

NOTE 13 - COMMITMENTS AND CONTINGENCIES - (Details Narrative) - USD ($)	12 Months Ended			120 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2026
Rent Expense	$ 4,222,000	$ 4,266,000	$ 4,571,000
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
Stipulation agreement with creditors	297,339
Average Monthly Payment for Stipulation Agreements	15,859
Included in Company's Accrued Expenses As Result of Lawsuit	300,000	300,000
Recorded sales tax obligations - principal	2,402,000
Recorded sales tax obligations - interest and penalties	2,487,000
Reserve for Self-Funded Health Insurance Program	392,000	$ 510,000
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 15% discount This plan has not been put into effect as of June 30, 2016.
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, 2016 and 2015, $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. The case was settled for $258,400 plus interest on February 18, 2016.
Settlement of Case (value)	$ 258,400

NOTE 15 - SUPPLEMENTAL CASH F85

NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Note 15 - Supplemental Cash Flow Information - Details Narrative
Interest paid	$ 356,106	$ 516,385	$ 668,475
Income taxes paid	$ 360,496	$ 143,996	$ 349,501

NOTE 17 - SEGMENT AND RELATED86

NOTE 17 - SEGMENT AND RELATED INFORMATION - (Details Narrative)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Note 17 - Segment And Related Information - Details Narrative
Export Sales of medical equipment	19.60%	74.20%	42.40%
Foreign Revenues of service and repair of medical equipment	5.80%	7.40%	8.80%

NOTE 21 - SUBSEQUENT EVENTS - (

NOTE 21 - SUBSEQUENT EVENTS - (Details Narrative)	3 Months Ended
	Sep. 28, 2016USD ($)shares
Note 21 - Subsequent Events - Details Narrative
Shares of common stock issued in settlement of liabilities (Shares). | shares	106,600
Value of Shares Issued in Settlement of Liabilities (Value) | $	$ 2,000,000