FONAR (FONR) 10-K 21 Sep 18 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2018	Sep. 10, 2018	Dec. 29, 2017
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, 2018
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			$ 152,600,000
Entity Common Stock, Shares Outstanding		6,357,482
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,018

Balance Sheets

Balance Sheets - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Current Assets:
Cash and cash equivalents	$ 19,633,742	$ 10,139,621
Accounts receivable - net	3,813,576	4,321,760
Medical receivables -net	13,350,772	11,744,704
Management and other fees receivable -net	21,863,431	18,593,894
Management and other fees receivable - related medical practices -net	5,535,096	4,959,598
Costs and estimated earnings in excess of billings on uncompleted contracts	86,638	736,061
Inventories	1,431,380	1,624,262
Prepaid expenses and other current assets	1,349,907	1,293,806
Total Current Assets	67,064,542	53,413,706
Income taxes receivable	1,200,000
Deferred income tax asset	22,689,011	17,861,777
Property and equipment - net	16,492,278	16,462,504
Goodwill	3,985,397	3,927,123
Other intangible assets - net	5,601,656	6,644,504
Other Assets	1,278,061	452,952
Total Assets	118,310,945	98,762,566
Current Liabilities:
Current portion of long-term debt and capital leases	38,332	180,090
Accounts payable	1,300,250	1,423,217
Other current liabilities	8,177,995	7,203,278
Unearned revenue on service contracts	4,191,930	4,641,534
Customer deposits	858,195	787,884
Total Current Liabilities	14,566,702	14,236,003
Long-Term Liabilities:
Deferred Income Tax Liability	239,011	331,527
Due to related party medical practices	227,543	227,543
Long-term debt and capital leases, less current portion	306,035	336,761
Other Liabilities	737,183	720,779
Total Long-Term Liabilities	1,509,772	1,616,610
Total Liabilities	16,076,474	15,852,613
STOCKHOLDERS' EQUITY:
Paid-in capital in excess of par value	179,131,780	179,131,780
Accumulated deficit	(79,772,587)	(101,003,389)
Notes receivable from employee stockholders	(9,213)	(16,546)
Treasury stock, at cost - 11,643 shares of common stock at June 30, 2018 and 2017	(675,390)	(675,390)
Total Fonar Corporation Stockholder Equity	98,675,289	77,437,154
Noncontrolling interests	3,559,182	5,472,799
Total Stockholders' Equity	102,234,471	82,909,953
Total Liabilities and Stockholders' Equity	118,310,945	98,762,566
Class A Non-Voting Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred Stock Value	31	31
Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred Stock Value	0	0
Class B Members
STOCKHOLDERS' EQUITY:
Common Stock Value	0	0
Common Shares
STOCKHOLDERS' EQUITY:
Common Stock Value	630	630
Class C Common Stock
STOCKHOLDERS' EQUITY:
Common Stock Value	$ 38	$ 38

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Jun. 30, 2017
Class A Non-Voting Preferred Stock
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
Preferred Stock
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Authorized	567,000	567,000
Common Shares
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	8,500,000	8,500,000
Common Stock, Issued	6,299,154	6,299,154
Common Stock, Outstanding	6,287,511	6,287,511
Class B Members
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	227,000	227,000
Common Stock, Issued	146	146
Common Stock, Outstanding	146	146
Class C Common Stock
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	567,000	567,000
Common Stock, Issued	382,513	382,513
Common Stock, Outstanding	382,513	382,513

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
REVENUES
Product sales - net	$ 602,541	$ 1,572,148	$ 1,276,882
Service and repair fees - net	9,124,728	9,537,040	9,396,736
Service and repair fees - related parties - net	110,000	110,000	110,000
Patient fee revenue, net of contractual allowances and discounts	39,165,413	36,400,600	32,985,809
Provision for bad debts for patient fee	(17,896,528)	(16,171,434)	(14,539,786)
Management and other fees - net	41,422,958	38,361,514	36,633,230
Management and other fees - related party medical practices - net	8,986,882	8,226,718	7,505,339
Total Revenues - Net	81,515,994	78,036,586	73,368,210
COSTS AND EXPENSES
Costs related to product sales	751,221	931,501	1,254,328
Costs related to service and repair fees	3,212,527	2,996,736	2,148,143
Costs related to service and repair fees -related parties	38,728	34,564	25,147
Costs related to patient fee revenue	10,256,951	8,987,673	9,418,935
Costs related to management and other fees	22,778,202	20,828,581	21,949,583
Costs related to management and other fees - related medical practices	4,913,141	4,273,370	4,074,762
Research and development	1,755,747	1,480,670	1,631,846
Selling, general and administrative, inclusive of compensatory element of stock issuances of $0, $2,397,276 and $2,006 for the years ended June 30, 2018, 2017 and 2016, respectively	18,125,266	19,407,411	18,509,850
Total Costs and Expenses	61,831,783	58,940,506	59,012,594
INCOME
Income from Operations	19,684,211	19,096,080	14,355,616
Other Income and (Expenses):
Interest expense	(160,074)	28,299	(262,193)
Investment income	262,569	193,141	224,263
Other (expense) income - net	(4,271)	(1,156)	190,560
Income before benefit for income taxes and noncontrolling interests	19,782,435	19,316,364	14,508,246
Benefit for Income Taxes	(5,669,750)	(4,362,434)	(4,287,271)
Net Income	25,452,185	23,678,798	18,795,517
Net Income - Noncontrolling Interests	(4,221,383)	(4,058,177)	(3,070,892)
Net Income - Attributable to FONAR	21,230,802	19,620,621	15,724,625
Common Shares
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 19,899,823	$ 18,390,586	$ 14,702,834
Basic Net Income Per Common Share	$ 3.16	$ 2.98	$ 2.43
Diluted Net Income Per Common Share	$ 3.1	$ 2.92	$ 2.38
Weighted Average Basic Shares Outstanding - Common Stockholders	6,287,510	6,161,599	6,050,893
Weighted Average Diluted Shares Outstanding - Common Stockholders	6,415,014	6,289,103	6,178,397
Class A Non Voting Preferred Stock
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 992,005	$ 916,769	$ 761,561
Class C Common Stock
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 338,974	$ 313,266	$ 260,230
Basic Net Income Per Common Share	$ 0.89	$ 0.82	$ 0.68
Diluted Net Income Per Common Share	$ 0.89	$ 0.82	$ 0.68
Weighted Average Basic Shares Outstanding - Common Stockholders	382,513	382,513	382,513
Weighted Average Diluted Shares Outstanding - Common Stockholders	382,513	382,513	382,513

Statements of Operations (Paren

Statements of Operations (Parenthetical) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
compensatory element of stock issuances	$ 0	$ 2,397,276	$ 2,006

Shareholders Equity and Compreh

Shareholders Equity and Comprehensive Income - USD ($)	Common Shares	Class A Non-Voting Preferred	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, Value at Jun. 30, 2015	$ 607	$ 31	$ 38	$ 175,447,586	$ (136,348,635)	$ (31,495)	$ (675,390)	$ 12,390,771	$ 50,783,513
Balance - Beginning, Shares at Jun. 30, 2015	6,050,840
Net Income					15,724,625			3,070,892	18,795,517
Stock issued to employees under stock bonus plans, Value				2,006					2,006
Stock issued to employees under stock bonus plans, Shares	146
Payments on notes receivable from employee stockholders						7,616			7,616
Stock option exercised, Value				1,755					1,755
Stock option exercised, Shares	180
Redemption of noncontrolling interests				(1,749,012)				(1,155,988)	(2,905,000)
Distributions to noncontrolling interests								(5,909,100)	(5,909,100)
Balance - Ending, Value at Jun. 30, 2016	$ 607	31	38	173,702,335	(120,624,010)	(23,879)	(675,390)	8,396,575	60,776,307
Balance - Ending, Shares at Jun. 30, 2016	6,051,166
Net Income					19,620,621			4,058,177	23,678,798
Stock issued to employees under stock bonus plans, Value	$ 19			4,636,559					4,636,578
Stock issued to employees under stock bonus plans, Shares	193,221
Payments on notes receivable from employee stockholders						7,333			7,333
Issuance of stock for acquistion, Value	$ 4			791,206					791,210
Issuance of stock for acquistion, Shares	42,884
Stock option exercised, Value				1,680					1,680
Stock option exercised, Shares	240
Distributions to noncontrolling interests								(6,981,953)	(6,981,953)
Balance - Ending, Value at Jun. 30, 2017	$ 630	31	38	179,131,780	(101,003,389)	(16,546)	(675,390)	5,472,799	82,909,953
Balance - Ending, Shares at Jun. 30, 2017	6,287,511
Net Income					21,230,502			4,221,383	25,452,185
Payments on notes receivable from employee stockholders						7,333			7,333
Distributions to noncontrolling interests								(6,135,000)	(6,135,000)
Balance - Ending, Value at Jun. 30, 2018	$ 630	$ 31	$ 38	$ 179,131,780	$ (79,772,587)	$ (9,213)	$ (675,390)	$ 3,559,182	$ 102,234,471
Balance - Ending, Shares at Jun. 30, 2018	6,287,511

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 25,452,185	$ 23,678,798	$ 18,795,517
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,899,851	3,533,564	3,297,289
Abandoned patents or software written off			88,796
Provision for bad debts	(614,680)	477,577	(201,949)
Deferred income tax benefit - net	(4,919,750)	(4,969,669)	(4,647,767)
Income tax receivable	(1,200,000)
Gain on acquisition			(192,999)
Compensatory element of stock issuances	0	2,397,276	$ 2,006
Stock issued for costs and expenses		$ 2,239,302
Stock option exercised		1,680	1,755
(Increase) decrease in operating assets, net:
Accounts, medical and management fee receivables	(4,328,239)	$ (5,899,611)	$ (3,557,507)
Notes receivable	(894,665)	11,511	28,280
Costs and estimated earnings in excess of Billings on uncompleted contracts	649,423	(736,061)	681,660
Inventories	192,882	450,038	117,549
Prepaid expenses and other current assets	(1,553)	(513,507)	72,718
Other assets	15,008	254,721	18,054
Increase (decrease) in operating liabilities, net:
Accounts payable	(122,967)	168,733	(527,957)
Other current liabilities	525,113	(3,660,895)	3,065,673
Customer advances	70,311	(410,855)	(739,074)
Billings in excess of costs and estimated earnings on uncompleted contracts		(206,623)	64,406
Other Liabilities	16,404	8,783	242,798
Due to related party medical practices		(17,498)	8,121
NET CASH PROVIDED BY OPERATING ACTIVITIES	18,739,323	16,807,264	16,617,369
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(2,777,948)	(2,851,158)	(712,216)
Cost of acquisition	(58,274)	(1,312,769)	(4,223,567)
Cost of patents	(108,829)	(155,156)	(113,072)
NET CASH USED IN INVESTING ACTIVITIES	(2,945,051)	(4,319,083)	(5,048,855)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of borrowings and capital lease obligations	(172,484)	(3,990,078)	(3,682,519)
Repayment of notes receivable from employee stockholders	7,333	7,333	7,616
Distributions to noncontrolling interests	(6,135,000)	(6,981,953)	(5,909,100)
Redemption of noncontroling Interests			(2,905,000)
Proceeds received from acquisition -net		87,829
NET CASH USED IN FINANCING ACTIVITIES	(6,300,151)	(10,876,869)	(12,489,003)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	9,494,121	1,611,312	(920,489)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR	10,139,621	8,528,309	9,448,798
CASH AND CASH EQUIVALENTS - END OF YEAR	$ 19,633,742	$ 10,139,621	$ 8,528,309

NOTE 1 - DESCRIPTION OF BUSINES

NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY AND CAPITAL RESOURCES	12 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY AND CAPITAL RESOURCES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 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.

NOTE 2 - SUMMARY OF SIGNIFICANT

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 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. Expenses for maintenance and repairs are charged to operations. Renewals and betterments are capitalized. Maintenance and repair expenses totaled approximately $1,451,000, $1,116,000 and $1,113,000 for the years ended June 30, 2018, 2017 and 2016, respectively. The estimated useful lives in years are generally as follows: 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 sales (upgrades and supplies) 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, 2018, the Company has twenty two 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 nineteen 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 $66,000 to $439,000. 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. 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, 2018, 2017 and 2016 are summarized in the following table. For the Year Ended June 30, 2018 2017 2016 Commercial Insurance/ Managed Care $ 4,729,514 $ 4,904,892 $ 4,659,322 Medicare/Medicaid 1,233,078 1,274,436 1,182,552 Workers' Compensation/Personal Injury 25,358,543 23,240,829 20,888,856 Other 7,844,278 6,980,443 6,255,079 Patient Fee Revenue, net of contractual allowances and discounts 39,165,413 36,400,600 32,985,809 Provision for Bad Debts (17,896,528 ) (16,171,434 ) (14,539,786 ) Net Patient Fee Revenue $ 21,268,885 $ 20,229,166 $ 18,446,023 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 $607,000, $531,000 and $535,000 for the years ended June 30, 2018, 2017 and 2016, respectively. Shipping Costs The Company’s shipping and handling costs are included in revenue from product sales and the related expense included in costs related to product sales is $9,370, $8,224 and $11,077 for the years ended June 30, 2018, 2017 and 2016, 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, 2018, 2017 and 2016. 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, 2018, 2017 and 2016, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. June 30, 2018 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 21,230,802 $ 19,899,823 $ 338,974 Denominator: Weighted average shares outstanding 6,287,510 6,287,510 382,513 Basic income per common share $ 3.38 $ 3.16 $ 0.89 Diluted Denominator: Weighted average shares outstanding 6,287,510 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,415,014 382,513 Diluted income per common share $ 3.10 $ 0.89 June 30, 2017 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 19,620,621 $ 18,390,586 $ 313,266 Denominator: Weighted average shares outstanding 6,161,599 6,161,599 382,513 Basic income per common share $ 3.18 $ 2.98 $ 0.82 Diluted Denominator: Weighted average shares outstanding 6,161,599 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,289,103 382,513 Diluted income per common share $ 2.92 $ 0.82 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 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, 2018, the Company had cash on deposit of approximately $17,478,000 in excess of federally insured limits of $250,000. Related Parties: Net revenues from related parties accounted for approximately 11%, 11% and 10% of the consolidated net revenues for the years ended June 30, 2018, 2017 and 2016, respectively. Net management fee receivables from the related party medical practices accounted for approximately 12%, 13% and 12% of the consolidated accounts receivable for the years ended June 30, 2018, 2017 and 2016, 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, 2018 and 2017, 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 May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, (Topic 606). ASU 2014-09 requires an entity to recognize as revenue the amount that reflects the consideration which it expects to be entitled in exchange for goods and services as it transfers control to its customers. It also requires more detailed disclosures to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company earns revenue from the sale of scanners, maintenance contracts, product upgrades, patient services and management fees. Under the new guidance, the reporting for patient services revenue will be reported differently. All other streams of revenue will not be impacted by the new guidance. The primary change for healthcare providers under the new guidance relates to revenue generated from patient services, with patient responsibility for payment. Under the new guidance, the Company is required to report an implicit price concession (both initially and for the subsequent changes in estimates) as a reduction of revenues as opposed to bad debt expense as a component of operating expenses. The Company will record any changes in expectation of collection amounts due to patient specific events that suggests that the patient no longer has the ability and intent to pay the amount due through the bad debt expense, as that is more indicative of a change in the customer’s credit worthiness as opposed to change in the transaction price. The new standard supersedes most current revenue guidance, including industry-specific guidance. The guidance became effective for the Company on July 1, 2018 and as part of adopting the standard, the Company identified revenue streams of like contracts to allow for ease of implementation. The Company used primarily a portfolio approach to apply the new model to classes of customers with similar characteristics. The impact of adopting the new standard on our total revenue; and income from operations is not material. While the adoption of ASU 2014-09 will impact the presentation of net operating revenues in our Consolidated Statements of Operations and will impact certain disclosures, it will not materially impact our financial position, results of operations or cash flows. There was no cumulative effect of a change in accounting principle recorded related to the adoption of ASU 2014-09 on July 1, 2018. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements. 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 has adopted ASU No. 2016-09. Our adoption of ASU No. 2016-09 did not have an impact on the Company’s financial statements. 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 Company has adopted ASU 2015-11. Our adoption of ASU 2015-11 did not have an impact on the Company’s financial statements. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2018 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 2018 or 2017, and it does not believe that any of those pronouncements will have a significant impact on our consolidated financial statements at the time they become effective. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifications did not have any effect on reported net income for any periods presented.

NOTE 3 - ACCOUNTS RECEIVABLE, M

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE	12 Months Ended
	Jun. 30, 2018
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, 2018, 2017 and 2016 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 65%, 62% and 59%, respectively, of the PCs’ 2018, 2017 and 2016 net revenues were derived from no-fault and personal injury protection claims. The Company considers the aging of its accounts receivable in determining the amount of allowance for doubtful accounts. The Company generally takes all legally available steps to collect its receivables. Credit losses associated with the receivables are provided for in the consolidated financial statements and have historically been within management's expectations. Net revenues from management and other fees charged to the related party medical practices accounted for approximately 11%, 11% and 10%, of the consolidated net revenues for the years ended June 30, 2018, 2017 and 2016, 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, 2018, 2017 and 2016. For The Year Ended June 30, 2018 2017 2016 Total Facilities Owned or Managed (at Beginning of Year) 26 25 24 Facilities Added by: Acquisition — 1 1 Internal development — — — Managed Facilities Closed — — — Total Facilities Owned or Managed (at End of Year) 26 26 25

NOTE 4 - COSTS AND ESTIMATED EA

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	12 Months Ended
	Jun. 30, 2018
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, 2018, 2017 and 2016 NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS Information relating to uncompleted contracts as of June 30, 2018 and 2017 is as follows: As of June 30, 2018 2017 Costs incurred on uncompleted contracts $ 448,437 $ 1,030,675 Estimated earnings 309,248 999,433 757,685 2,030,108 Less: Billings to date 671,047 1,294,047 $ 86,638 $ 736,061

NOTE 5 - INVENTORIES

NOTE 5 - INVENTORIES	12 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
NOTE 5 - INVENTORIES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 5 – INVENTORIES Inventories included in the accompanying consolidated balance sheets consist of: As of June 30, 2018 2017 Purchased parts, components and supplies $ 1,312,299 $ 1,430,901 Work-in-process 119,081 193,361 $ 1,431,380 $ 1,624,262

NOTE 6 - PROPERTY AND EQUIPMENT

NOTE 6 - PROPERTY AND EQUIPMENT	12 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
NOTE 6 - PROPERTY AND EQUIPMENT	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 6 - PROPERTY AND EQUIPMENT Property and equipment, at cost, less accumulated depreciation and amortization, at June 30, 2018 and 2017, is comprised of: As of June 30, 2018 2017 Diagnostic equipment $ 24,296,957 $ 22,356,565 Research, development and demonstration equipment 2,987,531 2,749,753 Machinery and equipment 2,069,055 2,069,055 Furniture and fixtures 3,036,539 3,000,316 Leasehold improvements 7,165,035 6,601,480 Building 939,614 939,614 40,494,731 37,716,783 Less: Accumulated depreciation and amortization 24,002,453 21,254,279 $ 16,492,278 $ 16,462,504 Depreciation and amortization of property and equipment for the years ended June 30, 2018, 2017 and 2016 was $2,748,174, $2,303,554 and $2,042,211, respectively. During the year ended June 30, 2017, the Company has retired assets that were fully depreciated with a cost and accumulated depreciation basis of $1,849,409.

NOTE 7 - OTHER INTANGIBLE ASSET

NOTE 7 - OTHER INTANGIBLE ASSETS	12 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
NOTE 7 - OTHER INTANGIBLE ASSETS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 7 - OTHER INTANGIBLE ASSETS Other intangible assets, net of accumulated amortization, at June 30, 2018 and 2017 are comprised of: As of June 30, 2018 2017 Capitalized software development costs $ 7,004,847 $ 7,004,847 Patents and copyrights 4,835,806 4,726,977 Non-competition agreements 4,100,000 4,100,000 Customer relationships 3,800,000 3,800,000 19,740,653 19,631,824 Less: Accumulated amortization 14,138,997 12,987,320 $ 5,601,656 $ 6,644,504 Information related to the above intangible assets for the years ended June 30, 2018, 2017 and 2016 is as follows: As of June 30, 2018 2017 2016 Balance – Beginning of Year $ 6,644,504 $ 7,719,358 $ 8,950,160 Amounts capitalized 108,829 155,156 113,072 Software or patents written off — — (88,796 ) Amortization (1,151,677 ) (1,230,010 ) (1,255,078 ) Balance – End of Year $ 5,601,656 $ 6,644,504 $ 7,719,358 Amortization of patents and copyrights for the years ended June 30, 2018, 2017 and 2016 amounted to $202,630, $194,296 and $187,553, respectively. Amortization of capitalized software development costs for the years ended June 30, 2018, 2017 and 2016 was $173,333, $260,000 and $291,810, respectively. Amortization of non-competition agreements for the years ended June 30, 2018, 2017 and 2016 amounted to $585,714, $585,714 and $585,714, respectively. Amortization of customer relationships for the years ended June 30, 2018, 2017 and 2016 amounted to $190,000, $190,000 and $190,000, respectively. The estimated amortization of other intangible assets for the five years ending June 30, 2023 and thereafter is as follows: For the Years Ending June 30, Total Patents and Copyrights Non- competition Customer Relationships 2019 $ 980,284 $ 204,570 $ 585,714 $ 190,000 2020 783,072 202,595 390,477 190,000 2021 393,102 203,102 — 190,000 2022 391,713 201,713 — 190,000 2023 387,103 197,103 — 190,000 Thereafter 2,666,382 829,715 — 1,836,667 $ 5,601,656 $ 1,838,798 $ 976,191 $ 2,786,667 The weighted average amortization period for other intangible assets is 11.1 years and they have no expected residual value.

NOTE 8 - CAPITAL STOCK

NOTE 8 - CAPITAL STOCK	12 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
NOTE 8 - CAPITAL STOCK	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 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 of such shares outstanding at June 30, 2018, 2017 and 2016, 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, 2018, 716,876 shares of common stock of FONAR were available for future grant under this plan. For the years ended June 30, 2018, 2017 and 2016, 0, 193,461 and 146 shares were issued respectively. Options The Company had 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.

NOTE 9 - CONTROLLING AND NONCON

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS	12 Months Ended
	Jun. 30, 2018
Noncontrolling Interest [Abstract]
NOTE 9 - CONTROLLING AND NON CONTROLLING INTERESTS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 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, 2018, 2017 and 2016 June 30, 2018 June 30, 2017 June 30, 2016 Class A Members Class B Member Class A Members Class B Member Class A Members Class B Member Opening Members’ Equity $ 5,472,799 $ 27,988,982 $ 8,396,575 $ 23,314,842 $ 10,752,169 $ 22,043,621 Share of Net Income 4,221,383 18,101,940 4,058,177 16,947,624 2,886,006 13,229,621 Distributions (6,135,000 ) (14,315,000 ) (6,981,953 ) (12,273,484 ) (5,241,600 ) (11,958,400 ) Ending Members’ Equity $ 3,559,182 $ 31,775,922 $ 5,472,799 $ 27,988,982 $ 8,396,575 $ 23,314,842 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 June 30, 2016 Class A Members Class B Member Opening Members’ Equity $ 1,279,446 $ 15,000,446 Share of Net Income — — Distributions (202,500 ) — Buyout 48,054 Redemption (1,125,000 ) — Ending Members’ Equity $ — $ 15,000,446 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, 2018
Debt Disclosure [Abstract]
NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES Long-term debt, notes payable and capital leases consist of the following: 2018 2017 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 $515,834 as of June 30, 2018. $ 336,781 $ 365,406 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. — — 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. — 143,676 Other (including capital leases for property and equipment). 7,586 7,769 344,367 516,851 Less: Current portion 38,332 180,090 $ 306,035 $ 336,761 The maturities of long-term debt over the next five years and thereafter are as follows: Years Ending June 30, 2019 $ 38,332 2020 32,944 2021 35,416 2022 38,013 2023 40,820 Thereafter 158,842 $ 344,367

NOTE 11 - INCOME TAXES

NOTE 11 - INCOME TAXES	12 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
NOTE 11 - INCOME TAXES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 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. The Company believes there are no uncertain tax positions in prior years tax filings and therefore it has not recorded a liability for unrecognized tax benefits. 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 2014. The Company has recorded a deferred tax asset of $22,689,011 and a deferred tax liability of $239,011 as of June 30, 2018, primarily relating to its net operating loss carryforwards of approximately $82,662,000 available to offset future taxable income through 2030. The net operating losses begin to expire in 2021 for federal tax and state income tax purposes. Future ownership changes as determined under Section 382 of the Internal Revenue code could further limit the utilization of net operating loss carryforwards. As of June 30, 2018, no such changes in ownership have occurred. 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, the regulatory environment of the industry, 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 deferred tax asset carryforwards, will not all be fully realized. In recognition of this inherent risk, a valuation allowance was established for the partial value of the deferred tax asset, (principally related to research and development tax credits and allowance for doubtful accounts). A valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of the remainder of the valuation. The valuation allowance for deferred tax assets decreased during the year ended June 30, 2018, by approximately $27,600,000, of which $16,000,000 was the result of the revalued deferred tax assets due to the Tax Cuts and Jobs Act and the benefits expected to be realized from the usage of net operating losses given the Company’s current and projected profitable operations. The valuation allowance decreased by approximately $11,131,000 during the year ended June 30, 2017. Components of the benefit for income taxes are as follows: Years Ended June 30, 2018 2017 2016 Current: Federal $ 185,000 $ 250,000 $ 360,496 State 265,000 357,235 — Federal deferred taxes (4,132,590 ) (4,552,702 ) (4,368,901 ) State deferred taxes (787,160 ) (416,967 ) (278,866 ) AMT Credits (1,200,000 ) — — $ (5,669,750 ) $ (4,362,434 ) $ (4,287,271 ) 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, 2018 2017 2016 Taxes at federal statutory rate 27.7 % 35.0 % 35.0 % State and local income taxes (benefit), net of federal benefit 4.0 % 4.0 % 6.0 % Permanent differences 0.1 % 0.1 % 0.2 % Tax Cuts and Jobs Act Rate Change (33.9 )% (0.0 )% (0.0 )% Decrease in the valuation allowance (24.5 )% (73.0 )% (89.8 )% AMT Credits (8.5 )% (0.0 )% (0.0 )% True ups (2.8 )% 5.0 % (0.0 )% Effective income tax rate (37.9 )% (28.9 )% (48.6 )% The Tax Cuts and Jobs Act was signed into law on December 22, 2017 and makes numerous changes to the Internal Revenue Code. Among other changes, the Act reduces the US corporate income tax rate to 21% effective January 1, 2018. Because the Act became effective mid-way through the Company’s tax year, the Company will have a US statutory income tax rate of 27.7% for the fiscal 2018 and will have a 21% statutory income tax rate for fiscal years thereafter. Under ASC740, Accounting for Income Taxes, the enactment of the Tax Act also requires companies, to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. The Company’s gross deferred tax assets and liabilities we revalued from 35% to 21%. Deferred tax assets of $46.2 million (as of the enactment effective date) were revalued to approximately $30.2 million with a corresponding decrease to the Company’s valuation allowance. As of June 30, 2018, the Company has net operating loss (“NOL”) carryforwards of approximately $82,662,000 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 $4,257,000. However, the realization of these credits may be limited as a result of expiring prior to their utilization. These credits can only be applied after all net operating losses have been used. As such, the Company has established a valuation reserve for anticipated unused credits of $3,130,000. Also at June 30, 2018, the Company has $1,200,000 in alternative minimum tax credit carryovers. In connection with tax reform, these credits have been eliminated. Tax reform allows for corporations to carryover such unused tax credits to offset regular tax or apply for a cash refund. As of June 30, 2018, the Company recorded an income tax receivable for expected cash refunds. The Company anticipates receiving its first installment of reimbursement of $600,000 with the filiing of its June 30, 2019 income tax return to be filed in fiscal 2020. In addition, for New York State income tax purposes, the Company has tax credit carryforwards aggregating approximately $1,134,000 which, are accounted for under the flow-through method. The utilization of these credits is also expected to be limited. Significant components of the Company's deferred tax assets and liabilities at June 30, 2018 and 2017 are as follows: June 30, 2018 2017 Deferred tax assets: Allowance for doubtful accounts $ 3,262,504 $ 6,255,976 Non-deductible accruals 752,595 273,435 Net operating carryforwards 20,665,597 39,330,708 Tax credits 4,330,769 5,744,086 Inventory 55,514 130,430 Property and equipment and depreciation 213,781 298,426 29,280,760 52,033,061 Valuation allowance (6,591,749 ) (34,171,284 ) Total deferred tax assets 22,689,011 17,861,777 Intangibles (239,011 ) (331,527 ) Total deferred tax liabilities (239,011 ) (331,527 ) Net deferred tax asset $ 22,450,000 $ 17,530,250

NOTE 12 - OTHER CURRENT LIABILI

NOTE 12 - OTHER CURRENT LIABILITIES	12 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
NOTE 12 - OTHER CURRENT LIABILITIES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 12 - OTHER CURRENT LIABILITIES Included in other current liabilities are the following: June 30, 2018 2017 Accrued salaries, commissions and payroll taxes $ 3,438,087 $ 1,138,545 Litigation accruals 145,029 145,029 Sales tax payable 2,092,403 2,282,042 Legal and other professional fees 119,262 295,570 Accounting fees 125,000 153,750 Self-funded health insurance reserve 79,129 92,397 Accrued interest and penalty 1,497,429 2,341,667 Other 681,656 754,278 $ 8,177,995 $ 7,203,278

NOTE 13 - COMMITMENTS AND CONTI

NOTE 13 - COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
NOTE 13 - COMMITMENTS AND CONTINGENCIES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 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, 2018: Year Ending June 30, Facilities And Equipment (Operating Lease) 2019 $ 4,283,452 2020 3,644,287 2021 3,261,226 2022 2,433,479 2023 2,001,906 Thereafter 5,462,651 Total minimum obligations $ 21,087,001 Rent expense for operating leases approximated $4,762,000, $4,505,000 and $4,222,000, for the years ended June 30, 2018, 2017 and 2016, 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, 2018, 2017 and 2016. 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, 2018. Stipulation Agreements The Company has entered into stipulation agreements with a number of its creditors that in the aggregate total $193,979, which is included in other current liabilities and other liabilities on the Company’s balance sheet as of June 30, 2018. 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. During October 2016, the Company settled with the plaintiff for $300,000. 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 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 $2,092,000 plus interest and penalties of approximately $1,452,000. 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, 2018 and 2017, the Company had approximately $79,000 and $92,000, 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 - SUPPLEMENTAL CASH FLO

NOTE 14 - SUPPLEMENTAL CASH FLOW INFORMATION	12 Months Ended
	Jun. 30, 2018
Supplemental Cash Flow Elements [Abstract]
NOTE 14 - SUPPLEMENTAL CASH FLOW INFORMATION	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 14 - SUPPLEMENTAL CASH FLOW INFORMATION During the years ended June 30, 2018, 2017 and 2016, the Company paid $44,767, $162,022 and $356,106 for interest, respectively. During the years ended June 30, 2018, 2017 and 2016, the Company paid $345,000, $739,889 and $360,496 for income taxes, respectively. During the year ended June 30, 2017, the Company issued 106,600 shares of common stock for costs and expenses totaling $2,239,292.

NOTE 15 - DUE TO RELATED MEDICA

NOTE 15 - DUE TO RELATED MEDICAL PRACTICES	12 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
NOTE 15 - DUE TO RELATED MEDICAL PRACTICES	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 15 – 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, 2018 and 2017 was $134,880. Other Related Party Transactions The CEO and President of the Company is a minority owner 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. On June 1, 2017, the Company also entered into a one year renewable agreement to provide IT services to the billing company for a monthly fee of $23,884. The agreement was renewed on June 1, 2018 for another year. Bensonhurst MRI Limited Partnership, in which the 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 the 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 the 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 performed management services. The Company acquired this through a merger transaction for $1,312,766. A company in which the 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 16 - SEGMENT AND RELATED I

NOTE 16 - SEGMENT AND RELATED INFORMATION	12 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
NOTE 16 - SEGMENT AND RELATED INFORMATION	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 16 - 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 2018: Net revenues from external customers $ 9,837,269 $ 71,678,725 $ 81,515,994 Intersegment net revenues * $ 901,250 $ — $ 901,250 (Loss) Income from operations $ (2,982,778 ) $ 22,666,989 $ 19,684,211 Depreciation and amortization $ 353,307 $ 3,546,544 $ 3,899,851 Compensatory element of stock issuances $ — $ — $ — Total identifiable assets $ 32,364,298 $ 85,946,647 $ 118,310,945 Capital expenditures $ 346,608 $ 2,540,169 $ 2,886,777 Fiscal 2017: Net revenues from external customers $ 11,219,188 $ 66,817,398 $ 78,036,586 Intersegment net revenues * $ 1,200,000 $ — $ 1,200,000 (Loss) Income from operations $ (2,292,312 ) $ 21,388,392 $ 19,096,080 Depreciation and amortization $ 324,550 $ 3,209,014 $ 3,533,564 Compensatory element of stock issuances $ 2,397,276 $ — $ 2,397,276 Total identifiable assets $ 28,103,809 $ 69,658,676 $ 98,762,566 Capital expenditures $ 212,983 $ 2,793,331 $ 3,006,314 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 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 * 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 41.5%, 55.9% and 19.6% of product sales revenues to third parties for the years ended June 30, 2018, 2017 and 2016, 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, 2018 2017 2016 United Arab Emirates 7.1 % 45.4 % -% Switzerland — — — Canada — — 0.3 England 29.9 4.8 18.5 Germany 4.5 — .6 Puerto Rico — 5.7 .2 41.5 % 55.9 % 19.6 % 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 5.0%, 4.6% and 5.8% of consolidated net service and repair fees for the years ended June 30, 2018, 2017 and 2016, 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, 2018 2017 2016 Spain -% -% 0.3 % Puerto Rico 1.5 1.2 1.5 Switzerland 0.2 0.2 0.3 Germany 1.3 1.4 1.5 England 0.6 0.5 0.5 United Arab Emirates 0.3 — — Canada — 0.1 0.3 Greece 0.2 0.2 0.2 Australia 0.9 1.0 1.2 5.0 % 4.6 % 5.8 % The Company does not have any material assets outside of the United States.

NOTE 17 - ALLOWANCE FOR DOUBTFU

NOTE 17 - ALLOWANCE FOR DOUBTFUL ACCOUNTS	12 Months Ended
	Jun. 30, 2018
Valuation and Qualifying Accounts [Abstract]
NOTE 17 - ALLOWANCE FOR DOUBTFUL ACCOUNTS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 17 – ALLOWANCE FOR DOUBTFUL ACCOUNTS The following represents a summary of allowance for doubtful accounts for the years ended June 30, 2018, 2017 and 2016, respectively: Description Balance Additions (1) Deductions Balance Accounts receivable $ 190,244 $ — $ — $ 190,244 Management and other fees receivable 12,859,750 (1,744,064 ) 132,664 10,983,022 Management and other fees receivable - related medical practices 582,001 1,129,384 — 1,711,385 Medical receivables 19,853,318 17,896,528 15,022,148 22,727,698 Description Balance J une 30, 2016 Additions Deductions Balance J une 30, 2017 Accounts receivables $ 284,279 $ — $ 94,035 $ 190,244 Management and other fees receivable 13,553,005 (104,424 ) 588,831 12,859,750 Management and other fees receivable - related medical practices 392,505 582,001 392,505 582,001 Medical receivables 17,451,782 16,171,434 12,547,160 19,853,318 Description Balance J une 30, 2015 Additions Deductions Balance J une 30, 2016 Accounts receivables $ 362,362 $ — $ 78,083 $ 284,279 Management and other fees receivable 12,879,149 673,856 — 13,553,005 Management and other fees receivable - related medical practices 403,047 — 10,542 392,505 Medical receivables 15,459,156 14,539,786 12,547,160 17,451,782 (1) Included in provision for bad debts.

NOTE 18 - QUARTERLY FINANCIAL D

NOTE 18 - QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Jun. 30, 2018
Note 18 - Quarterly Financial Data
NOTE 18 - QUARTERLY FINANCIAL DATA (UNAUDITED)	QUARTERLY FINANCIAL DATA (UNAUDITED) (000’s omitted, except per share data) September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 Total Total Revenues – Net $ 19,334 $ 20,168 $ 20,979 $ 21,035 $ 81,516 Total Costs and Expenses 14,549 14,358 16,577 16,348 61,832 Net Income 4,601 5,240 4,262 11,349 25,452 Basic Net Income Per Common Share Available to Common Stockholders $ 0.55 $ 0.62 $ 0.52 $ 1.47 $ 3.16 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.54 $ 0.61 $ 0.51 $ 1.44 $ 3.10 September 30, 2016 December 31, 2016 March 31, 2017 June 30, 2017 Total Total Revenues – Net $ 18,734 $ 18,403 $ 20,008 $ 20,892 $ 78,037 Total Costs and Expenses 13,981 13,794 14,006 17,160 58,941 Net Income 4,500 4,934 7,122 7,123 23,679 Basic Net Income Per Common Share Available to Common Stockholders $ 0.55 $ 0.64 $ 0.90 $ 0.89 $ 2.98 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.54 $ 0.63 $ 0.88 $ 0.87 $ 2.92

NOTE 19 - BUSINESS COMBINATIONS

NOTE 19 - BUSINESS COMBINATIONS	12 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
NOTE 19 - BUSINESS COMBINATIONS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 19 – BUSINESS COMBINATIONS Acquisitions On June 15, 2017, the Company purchased 100% interest in Turnkey Equipment Management of Great Neck, LLC. The consideration and net assets acquired is as follows: Cash Paid $ 1,312,769 Security deposit 23,775 Total Consideration 1,336,544 Net assets at Fair Value 731,582 Goodwill $ 604,962 On March 20, 2017, the Company purchased 100% interest in Radwell Leasing LLC and Radwell LLC. The net assets acquired and consideration is as follows: Diagnostic Equipment $ 544,375 Leasehold Improvements 126,237 Total Net Assets Acquired $ 670,612 Stock issued as consideration $ 791,210 Less cash received - Net (120,598 ) Total Consideration $ 670,612 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 +

NOTE 20 - SUBSEQUENT EVENTS

NOTE 20 - SUBSEQUENT EVENTS	12 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
NOTE 20 - SUBSEQUENT EVENTS	FONAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2018, 2017 and 2016 NOTE 20 – 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, 2018, the Company issued 64,416 shares of common stock as payment of approximately $1.8 million in other current liabilities.

NOTE 2 - SUMMARY OF SIGNIFICA28

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2018
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. Expenses for maintenance and repairs are charged to operations. Renewals and betterments are capitalized. Maintenance and repair expenses totaled approximately $1,451,000, $1,116,000 and $1,113,000 for the years ended June 30, 2018, 2017 and 2016, respectively. The estimated useful lives in years are generally as follows: 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 sales (upgrades and supplies) 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, 2018, the Company has twenty two 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 nineteen 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 $66,000 to $439,000. 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. 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, 2018, 2017 and 2016 are summarized in the following table. For the Year Ended June 30, 2018 2017 2016 Commercial Insurance/ Managed Care $ 4,729,514 $ 4,904,892 $ 4,659,322 Medicare/Medicaid 1,233,078 1,274,436 1,182,552 Workers' Compensation/Personal Injury 25,358,543 23,240,829 20,888,856 Other 7,844,278 6,980,443 6,255,079 Patient Fee Revenue, net of contractual allowances and discounts 39,165,413 36,400,600 32,985,809 Provision for Bad Debts (17,896,528 ) (16,171,434 ) (14,539,786 ) Net Patient Fee Revenue $ 21,268,885 $ 20,229,166 $ 18,446,023
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 $607,000, $531,000 and $535,000 for the years ended June 30, 2018, 2017 and 2016, respectively.
Shipping Costs	Shipping Costs The Company’s shipping and handling costs are included in revenue from product sales and the related expense included in costs related to product sales is $9,370, $8,224 and $11,077 for the years ended June 30, 2018, 2017 and 2016, 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, 2018, 2017 and 2016. 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, 2018, 2017 and 2016, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. June 30, 2018 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 21,230,802 $ 19,899,823 $ 338,974 Denominator: Weighted average shares outstanding 6,287,510 6,287,510 382,513 Basic income per common share $ 3.38 $ 3.16 $ 0.89 Diluted Denominator: Weighted average shares outstanding 6,287,510 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,415,014 382,513 Diluted income per common share $ 3.10 $ 0.89 June 30, 2017 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 19,620,621 $ 18,390,586 $ 313,266 Denominator: Weighted average shares outstanding 6,161,599 6,161,599 382,513 Basic income per common share $ 3.18 $ 2.98 $ 0.82 Diluted Denominator: Weighted average shares outstanding 6,161,599 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,289,103 382,513 Diluted income per common share $ 2.92 $ 0.82 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
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, 2018, the Company had cash on deposit of approximately $17,478,000 in excess of federally insured limits of $250,000. Related Parties: Net revenues from related parties accounted for approximately 11%, 11% and 10% of the consolidated net revenues for the years ended June 30, 2018, 2017 and 2016, respectively. Net management fee receivables from the related party medical practices accounted for approximately 12%, 13% and 12% of the consolidated accounts receivable for the years ended June 30, 2018, 2017 and 2016, 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, 2018 and 2017, 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 May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, (Topic 606). ASU 2014-09 requires an entity to recognize as revenue the amount that reflects the consideration which it expects to be entitled in exchange for goods and services as it transfers control to its customers. It also requires more detailed disclosures to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company earns revenue from the sale of scanners, maintenance contracts, product upgrades, patient services and management fees. Under the new guidance, the reporting for patient services revenue will be reported differently. All other streams of revenue will not be impacted by the new guidance. The primary change for healthcare providers under the new guidance relates to revenue generated from patient services, with patient responsibility for payment. Under the new guidance, the Company is required to report an implicit price concession (both initially and for the subsequent changes in estimates) as a reduction of revenues as opposed to bad debt expense as a component of operating expenses. The Company will record any changes in expectation of collection amounts due to patient specific events that suggests that the patient no longer has the ability and intent to pay the amount due through the bad debt expense, as that is more indicative of a change in the customer’s credit worthiness as opposed to change in the transaction price. The new standard supersedes most current revenue guidance, including industry-specific guidance. The guidance became effective for the Company on July 1, 2018 and as part of adopting the standard, the Company identified revenue streams of like contracts to allow for ease of implementation. The Company used primarily a portfolio approach to apply the new model to classes of customers with similar characteristics. The impact of adopting the new standard on our total revenue; and income from operations is not material. While the adoption of ASU 2014-09 will impact the presentation of net operating revenues in our Consolidated Statements of Operations and will impact certain disclosures, it will not materially impact our financial position, results of operations or cash flows. There was no cumulative effect of a change in accounting principle recorded related to the adoption of ASU 2014-09 on July 1, 2018. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements. 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 has adopted ASU No. 2016-09. Our adoption of ASU No. 2016-09 did not have an impact on the Company’s financial statements. 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. 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 Company has adopted ASU 2015-11. Our adoption of ASU 2015-11 did not have an impact on the Company’s financial statements. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2018 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 2018 or 2017, and it does not believe that any of those pronouncements will have a significant impact on our consolidated financial statements at the time they become effective.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifications did not have any effect on reported net income for any periods presented.

NOTE 2 - SUMMARY OF SIGNIFICA29

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jun. 30, 2018
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 5–13 Research, development and demonstration equipment 3-7 Machinery and equipment 2-7 Furniture and fixtures 3-9 Leasehold improvements 2–10 Building 28
Patient Fee Revenue - Net	The Company’s patient fee revenues, net of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2018, 2017 and 2016 are summarized in the following table. For the Year Ended June 30, 2018 2017 2016 Commercial Insurance/ Managed Care $ 4,729,514 $ 4,904,892 $ 4,659,322 Medicare/Medicaid 1,233,078 1,274,436 1,182,552 Workers' Compensation/Personal Injury 25,358,543 23,240,829 20,888,856 Other 7,844,278 6,980,443 6,255,079 Patient Fee Revenue, net of contractual allowances and discounts 39,165,413 36,400,600 32,985,809 Provision for Bad Debts (17,896,528 ) (16,171,434 ) (14,539,786 ) Net Patient Fee Revenue $ 21,268,885 $ 20,229,166 $ 18,446,023
Earnings Per Share	Earnings Per Share June 30, 2018 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 21,230,802 $ 19,899,823 $ 338,974 Denominator: Weighted average shares outstanding 6,287,510 6,287,510 382,513 Basic income per common share $ 3.38 $ 3.16 $ 0.89 Diluted Denominator: Weighted average shares outstanding 6,287,510 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,415,014 382,513 Diluted income per common share $ 3.10 $ 0.89 June 30, 2017 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 19,620,621 $ 18,390,586 $ 313,266 Denominator: Weighted average shares outstanding 6,161,599 6,161,599 382,513 Basic income per common share $ 3.18 $ 2.98 $ 0.82 Diluted Denominator: Weighted average shares outstanding 6,161,599 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,289,103 382,513 Diluted income per common share $ 2.92 $ 0.82 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

NOTE 3 - ACCOUNTS RECEIVABLE,30

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Tables)	12 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Total Facilities	The following table sets forth the number of our facilities for the years ended June 30, 2018, 2017 and 2016. For The Year Ended June 30, 2018 2017 2016 Total Facilities Owned or Managed (at Beginning of Year) 26 25 24 Facilities Added by: Acquisition — 1 1 Internal development — — — Managed Facilities Closed — — — Total Facilities Owned or Managed (at End of Year) 26 26 25

NOTE 4 - COSTS AND ESTIMATED 31

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables)	12 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Costs and Estimated Earnings on Uncompleted Contracts	Information relating to uncompleted contracts as of June 30, 2018 and 2017 is as follows: As of June 30, 2018 2017 Costs incurred on uncompleted contracts $ 448,437 $ 1,030,675 Estimated earnings 309,248 999,433 757,685 2,030,108 Less: Billings to date 671,047 1,294,047 $ 86,638 $ 736,061

NOTE 5 - INVENTORIES (Tables)

NOTE 5 - INVENTORIES (Tables)	12 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories included in the accompanying consolidated balance sheets consist of: As of June 30, 2018 2017 Purchased parts, components and supplies $ 1,312,299 $ 1,430,901 Work-in-process 119,081 193,361 $ 1,431,380 $ 1,624,262

NOTE 6 - PROPERTY AND EQUIPME33

NOTE 6 - PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment, at cost, less accumulated depreciation and amortization, at June 30, 2018 and 2017, is comprised of: As of June 30, 2018 2017 Diagnostic equipment $ 24,296,957 $ 22,356,565 Research, development and demonstration equipment 2,987,531 2,749,753 Machinery and equipment 2,069,055 2,069,055 Furniture and fixtures 3,036,539 3,000,316 Leasehold improvements 7,165,035 6,601,480 Building 939,614 939,614 40,494,731 37,716,783 Less: Accumulated depreciation and amortization 24,002,453 21,254,279 $ 16,492,278 $ 16,462,504

NOTE 7 - OTHER INTANGIBLE ASS34

NOTE 7 - OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intagible Assets - Net	Other intangible assets, net of accumulated amortization, at June 30, 2018 and 2017 are comprised of: As of June 30, 2018 2017 Capitalized software development costs $ 7,004,847 $ 7,004,847 Patents and copyrights 4,835,806 4,726,977 Non-competition agreements 4,100,000 4,100,000 Customer relationships 3,800,000 3,800,000 19,740,653 19,631,824 Less: Accumulated amortization 14,138,997 12,987,320 $ 5,601,656 $ 6,644,504
Schedule Of Other Intangle Assets	Information related to the above intangible assets for the years ended June 30, 2018, 2017 and 2016 is as follows: As of June 30, 2018 2017 2016 Balance – Beginning of Year $ 6,644,504 $ 7,719,358 $ 8,950,160 Amounts capitalized 108,829 155,156 113,072 Software or patents written off — — (88,796 ) Amortization (1,151,677 ) (1,230,010 ) (1,255,078 ) Balance – End of Year $ 5,601,656 $ 6,644,504 $ 7,719,358
Amortization of Other Intangible Assets	The estimated amortization of other intangible assets for the five years ending June 30, 2023 and thereafter is as follows: For the Years Ending June 30, Total Patents and Copyrights Non- Customer Relationships 2019 $ 980,284 $ 204,570 $ 585,714 $ 190,000 2020 783,072 202,595 390,477 190,000 2021 393,102 203,102 — 190,000 2022 391,713 201,713 — 190,000 2023 387,103 197,103 — 190,000 Thereafter 2,666,382 829,715 — 1,836,667 $ 5,601,656 $ 1,838,798 $ 976,191 $ 2,786,667 The weighted average amortization period for other intangible assets is 11.1 years and they have no expected residual value.

NOTE 9 - CONTROLLING AND NONC35

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS (Tables)	12 Months Ended
	Jun. 30, 2018
Noncontrolling Interest [Abstract]
Class A And B Members' Equity (HDM Acquisition)	Amount of each class of HDM members’ equity as of June 30, 2018, 2017 and 2016 June 30, 2018 June 30, 2017 June 30, 2016 Class A Members Class B Member Class A Members Class B Member Class A Members Class B Member Opening Members’ Equity $ 5,472,799 $ 27,988,982 $ 8,396,575 $ 23,314,842 $ 10,752,169 $ 22,043,621 Share of Net Income 4,221,383 18,101,940 4,058,177 16,947,624 2,886,006 13,229,621 Distributions (6,135,000 ) (14,315,000 ) (6,981,953 ) (12,273,484 ) (5,241,600 ) (11,958,400 ) Ending Members’ Equity $ 3,559,182 $ 31,775,922 $ 5,472,799 $ 27,988,982 $ 8,396,575 $ 23,314,842
Class A And B Members' Equity (Imperial Management Services)	Amount of each class of Imperial members’ equity as of June 30, 2016 June 30, 2016 Class A Members Class B Member Opening Members’ Equity $ 1,279,446 $ 15,000,446 Share of Net Income — — Distributions (202,500 ) — Buyout 48,054 Redemption (1,125,000 ) — Ending Members’ Equity $ — $ 15,000,446

NOTE 10 - LONG-TERM DEBT, NOT36

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES (Tables)	12 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Long-Term Debt, Notes Payable And Capital Leases	Long-term debt, notes payable and capital leases consist of the following: 2018 2017 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 $515,834 as of June 30, 2018. $ 336,781 $ 365,406 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. — — 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. — 143,676 Other (including capital leases for property and equipment). 7,586 7,769 344,367 516,851 Less: Current portion 38,332 180,090 $ 306,035 $ 336,761
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, 2019 $ 38,332 2020 32,944 2021 35,416 2022 38,013 2023 40,820 Thereafter 158,842 $ 344,367

NOTE 11 - INCOME TAXES (Tables)

NOTE 11 - INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Components Of The Benefit Provision For Income Taxes	Components of the benefit for income taxes are as follows: Years Ended June 30, 2018 2017 2016 Current: Federal $ 185,000 $ 250,000 $ 360,496 State 265,000 357,235 — Federal deferred taxes (4,132,590 ) (4,552,702 ) (4,368,901 ) State deferred taxes (787,160 ) (416,967 ) (278,866 ) AMT Credits (1,200,000 ) — — $ (5,669,750 ) $ (4,362,434 ) $ (4,287,271 )
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, 2018 2017 2016 Taxes at federal statutory rate 27.7 % 35.0 % 35.0 % State and local income taxes (benefit), net of federal benefit 4.0 % 4.0 % 6.0 % Permanent differences 0.1 % 0.1 % 0.2 % Tax Cuts and Jobs Act Rate Change (33.9 )% (0.0 )% (0.0 )% Decrease in the valuation allowance (24.5 )% (73.0 )% (89.8 )% AMT Credits (8.5 )% (0.0 )% (0.0 )% True ups (2.8 )% 5.0 % (0.0 )% Effective income tax rate (37.9 )% (28.9 )% (48.6 )%
Components Of Company's Deferred Tax Assets And Liabilities	Significant components of the Company's deferred tax assets and liabilities at June 30, 2018 and 2017 are as follows: June 30, 2018 2017 Deferred tax assets: Allowance for doubtful accounts $ 3,262,504 $ 6,255,976 Non-deductible accruals 752,595 273,435 Net operating carryforwards 20,665,597 39,330,708 Tax credits 4,330,769 5,744,086 Inventory 55,514 130,430 Property and equipment and depreciation 213,781 298,426 29,280,760 52,033,061 Valuation allowance (6,591,749 ) (34,171,284 ) Total deferred tax assets 22,689,011 17,861,777 Intangibles (239,011 ) (331,527 ) Total deferred tax liabilities (239,011 ) (331,527 ) Net deferred tax asset $ 22,450,000 $ 17,530,250

NOTE 12 - OTHER CURRENT LIABI38

NOTE 12 - OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Other Current Liabilities	Included in other current liabilities are the following: June 30, 2018 2017 Accrued salaries, commissions and payroll taxes $ 3,438,087 $ 1,138,545 Litigation accruals 145,029 145,029 Sales tax payable 2,092,403 2,282,042 Legal and other professional fees 119,262 295,570 Accounting fees 125,000 153,750 Self-funded health insurance reserve 79,129 92,397 Accrued interest and penalty 1,497,429 2,341,667 Other 681,656 754,278 $ 8,177,995 $ 7,203,278

NOTE 13 - COMMITMENTS AND CON39

NOTE 13 - COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Operating Lease Commitments	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, 2018: Year Ending Facilities And Equipment 2019 $ 4,283,452 2020 3,644,287 2021 3,261,226 2022 2,433,479 2023 2,001,906 Thereafter 5,462,651 Total minimum obligations $ 21,087,001

NOTE 16 - SEGMENT AND RELATED40

NOTE 16 - SEGMENT AND RELATED INFORMATION (Tables)	12 Months Ended
	Jun. 30, 2018
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 2018: Net revenues from external customers $ 9,837,269 $ 71,678,725 $ 81,515,994 Intersegment net revenues * $ 901,250 $ — $ 901,250 (Loss) Income from operations $ (2,982,778 ) $ 22,666,989 $ 19,684,211 Depreciation and amortization $ 353,307 $ 3,546,544 $ 3,899,851 Compensatory element of stock issuances $ — $ — $ — Total identifiable assets $ 32,364,298 $ 85,946,647 $ 118,310,945 Capital expenditures $ 346,608 $ 2,540,169 $ 2,886,777 Fiscal 2017: Net revenues from external customers $ 11,219,188 $ 66,817,398 $ 78,036,586 Intersegment net revenues * $ 1,200,000 $ — $ 1,200,000 (Loss) Income from operations $ (2,292,312 ) $ 21,388,392 $ 19,096,080 Depreciation and amortization $ 324,550 $ 3,209,014 $ 3,533,564 Compensatory element of stock issuances $ 2,397,276 $ — $ 2,397,276 Total identifiable assets $ 29,103,809 $ 69,658,676 $ 98,762,566 Capital expenditures $ 212,983 $ 2,793,331 $ 3,006,314 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 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 * Amounts eliminated in consolidation
Export Product Sales	Export Product Sales For the Years Ended June 30, 2018 2017 2016 United Arab Emirates 7.1 % 45.4 % -% Switzerland — — — Canada — — 0.3 England 29.9 4.8 18.5 Germany 4.5 — .6 Puerto Rico — 5.7 .2 41.5 % 55.9 % 19.6 %
Foreign Service and Repair Fees	Foreign Service and Repair Fees For the Years Ended June 30, 2018 2017 2016 Spain -% -% 0.3 % Puerto Rico 1.5 1.2 1.5 Switzerland 0.2 0.2 0.3 Germany 1.3 1.4 1.5 England 0.6 0.5 0.5 United Arab Emirates 0.3 — — Canada — 0.1 0.3 Greece 0.2 0.2 0.2 Australia 0.9 1.0 1.2 5.0 % 4.6 % 5.8 %

NOTE 17 - ALLOWANCE FOR DOUBT41

NOTE 17 - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables)	12 Months Ended
	Jun. 30, 2018
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, 2018, 2017 and 2016, respectively: Description Balance Additions (1) Deductions Balance Accounts receivable $ 190,244 $ — $ — $ 190,244 Management and other fees receivable 12,859,750 (1,744,064 ) 132,664 10,983,022 Management and other fees receivable - related medical practices 582,001 1,129,384 — 1,711,385 Medical receivables 19,853,318 17,896,528 15,022,148 22,727,698 Description Balance June 30, 2016 Additions Deductions Balance June 30, 2017 Accounts receivables $ 284,279 $ — $ 94,035 $ 190,244 Management and other fees receivable 13,553,005 (104,424 ) 588,831 12,859,750 Management and other fees receivable - related medical practices 392,505 582,001 392,505 582,001 Medical receivables 17,451,782 16,171,434 12,547,160 19,853,318 Description Balance June 30, 2015 Additions Deductions Balance June 30, 2016 Accounts receivables $ 362,362 $ — $ 78,083 $ 284,279 Management and other fees receivable 12,879,149 673,856 — 13,553,005 Management and other fees receivable - related medical practices 403,047 — 10,542 392,505 Medical receivables 15,459,156 14,539,786 12,547,160 17,451,782 (1) Included in provision for bad debts.

NOTE 18 - QUARTERLY FINANCIAL42

NOTE 18 - QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Jun. 30, 2018
Supplemental Cash Flow Elements [Abstract]
Quarterly Financial Data	QUARTERLY FINANCIAL DATA (UNAUDITED) (000’s omitted, except per share data) September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 Total Total Revenues – Net $ 19,334 $ 20,168 $ 20,979 $ 21,035 $ 81,516 Total Costs and Expenses 14,549 14,358 16,577 16,348 61,832 Net Income 4,601 5,240 4,262 11,349 25,452 Basic Net Income Per Common Share Available to Common Stockholders $ 0.55 $ 0.62 $ 0.52 $ 1.47 $ 3.16 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.54 $ 0.61 $ 0.51 $ 1.44 $ 3.10 September 30, 2016 December 31, 2016 March 31, 2017 June 30, 2017 Total Total Revenues – Net $ 18,734 $ 18,403 $ 20,008 $ 20,892 $ 78,037 Total Costs and Expenses 13,981 13,794 14,006 17,160 58,941 Net Income 4,500 4,934 7,122 7,123 23,679 Basic Net Income Per Common Share Available to Common Stockholders $ 0.55 $ 0.64 $ 0.90 $ 0.89 $ 2.98 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.54 $ 0.63 $ 0.88 $ 0.87 $ 2.92

NOTE 19 - BUSINESS COMBINATIO43

NOTE 19 - BUSINESS COMBINATIONS (Tables)	12 Months Ended
	Jun. 30, 2018
Proforma Results	The following unaudited pro forma results of operations assumes that the TK2 Equipment Management LLC and Turnkey Services of New York LLC acquisitions were made at the beginning of the year prior to acquisition. Year ended June 30, 2016 Total Revenues – Net $ 73,368,210 Net Income - Controlling Interests $ 16,088,263 Net Income Available to Common Stockholders $ 15,042,842 Net Income Available to Class A Non-Voting Preferred Stockholders $ 779,173 Net Income Available to Class C Common Stockholders $ 266,248 Basic Net Income Per Common Share Available to Common Stockholders $ 2.49 Diluted Net Income Per Common Share Available to Common Stockholders $ 2.43 Basic and Diluted Income Per Share - Common C $ 0.70 Weighted Average Basic Shares Outstanding 6,050,893 Weighted Average Diluted Shares Outstanding 6,178,397 Weighted Average Basic and Diluted Shares Outstanding - Class C Common 382,513
Turnkey Equipment Management of Great Neck, LLC
Acquisition	On June 15, 2017, the Company purchased 100% interest in Turnkey Equipment Management of Great Neck, LLC. The consideration and net assets acquired is as follows: Cash Paid $ 1,312,769 Security deposit 23,775 Total Consideration 1,336,544 Net assets at Fair Value 731,582 Goodwill $ 604,962
Radwell Leasing, LLC & Radwell LLC
Acquisition	On March 20, 2017, the Company purchased 100% interest in Radwell Leasing LLC and Radwell LLC. The net assets acquired and consideration is as follows: Diagnostic Equipment $ 544,375 Leasehold Improvements 126,237 Total Net Assets Acquired $ 670,612 Stock issued as consideration $ 791,210 Less cash received - Net (120,598 ) Total Consideration $ 670,612
TK2 Equipment Management, LLC & Turnkey Equipment Management, LLC
Acquisition	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

NOTE 2 - SUMMARY OF SIGNIFICA44

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful Life in Years - (Details)	12 Months Ended
	Jun. 30, 2018
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 SIGNIFICA45

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Patient Fee Revenue Recognition - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Patient Fee Revenue, Net of Contractual Allowances and Discounts	$ 39,165,413	$ 36,400,600	$ 32,985,809
Less: Patient Fee Revenue Provision for Bad Debts	(17,896,528)	(16,171,434)	(14,539,786)
Net Patient Fee Revenue	21,268,885	20,229,166	18,446,023
Commercial Insurance / Managed Care
Patient Fee Revenue, Net of Contractual Allowances and Discounts	4,729,514	4,904,892	4,659,322
Medicare/Medicaid
Patient Fee Revenue, Net of Contractual Allowances and Discounts	1,233,078	1,274,436	1,182,552
Workers Compensation/Personal Injury
Patient Fee Revenue, Net of Contractual Allowances and Discounts	25,358,543	23,240,829	20,888,856
Other Patient Fee Revenues
Patient Fee Revenue, Net of Contractual Allowances and Discounts	$ 7,844,278	$ 6,980,443	$ 6,255,079

NOTE 2 - SUMMARY OF SIGNIFICA46

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Basic Numerator: Net Income Available to Common Stockholders	$ 21,230,802	$ 19,620,621	$ 15,724,625
Common Shares
Basic Numerator: Net Income Available to Common Stockholders	$ 19,899,823	$ 18,390,586	$ 14,702,834
Basic Denominator: Weighted Average Shares Outstanding	6,287,510	6,161,599	6,050,893
Basic Income Per Common Share	$ 3.16	$ 2.98	$ 2.43
Shares included upon conversion of Class C Common to calculate a diluted EPS	127,504	127,504	127,504
Total Denominator for Diluted Earnings Per Share	6,415,014	6,289,103	6,178,397
Diluted Income per Common Share	$ 3.1	$ 2.92	$ 2.38
Class C Common Stock
Basic Numerator: Net Income Available to Common Stockholders	$ 338,974	$ 313,266	$ 260,230
Basic Denominator: Weighted Average Shares Outstanding	382,513	382,513	382,513
Basic Income Per Common Share	$ 0.89	$ 0.82	$ 0.68
Total Denominator for Diluted Earnings Per Share	382,513	382,513	382,513
Diluted Income per Common Share	$ 0.89	$ 0.82	$ 0.68
Total
Basic Numerator: Net Income Available to Common Stockholders	$ 21,230,802	$ 19,620,621	$ 15,724,625
Basic Denominator: Weighted Average Shares Outstanding	6,287,510	6,161,599	6,050,893
Basic Income Per Common Share	$ 3.38	$ 3.18	$ 2.6

NOTE 3 - ACCOUNTS RECEIVABLE,47

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE-Total Facilities (Details)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Note 3 - Accounts Receivable Medical Receivable And Management And Other Fees Receivable-total Facilities
Total Facilities Owned or Managed (at Beginning of Year)	26	25	24
Managed Facilities Added Acquisition	0	1	1
Managed Facilities Added By Internal development	0	0	0
Managed Facilities Closed During year	0	0	0
Total Facilities Owned or Managed (at End of Year)	26	26	25

NOTE 4 - COSTS AND ESTIMATED 48

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS - Costs, Earnings, Billings, Uncompleted Contracts - (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Notes to Financial Statements
Costs incurred on uncompleted contracts	$ 448,437	$ 1,030,675
Estimated earnings	309,248	999,433
Costs and estimated earnings on uncompleted contracts	757,685	2,030,108
Less: Billings to date	671,047	1,294,047
Costs and estimated earnings in excess of billings on uncompleted contracts	$ 86,638	$ 736,061

NOTE 5 - INVENTORIES - Inventor

NOTE 5 - INVENTORIES - Inventories (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Inventory Disclosure [Abstract]
Purchased parts, components and supplies	$ 1,312,299	$ 1,430,901
Work-in-process	119,081	193,361
Inventories	$ 1,431,380	$ 1,624,262

NOTE 6 - PROPERTY AND EQUIPME50

NOTE 6 - PROPERTY AND EQUIPMENT - Property and Equipment (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Property and Equipment Before Accumulated depreciation and amortization	$ 40,494,731	$ 37,716,783
Less: Accumulated depreciation and amortization of property and equipment	24,002,453	21,254,279
Property and Equipment AfterAccumulated depreciation and amortization	16,492,278	16,462,504
Diagnostic Equipment
Property and Equipment Before Accumulated depreciation and amortization	24,296,957	22,356,565
Research, development and demonstration equipment
Property and Equipment Before Accumulated depreciation and amortization	2,987,531	2,749,753
Machinery and Equipment
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	3,036,539	3,000,316
Leasehold Improvements
Property and Equipment Before Accumulated depreciation and amortization	7,165,035	6,601,480
Building
Property and Equipment Before Accumulated depreciation and amortization	$ 939,614	$ 939,614

NOTE 7 - OTHER INTANGIBLE ASS51

NOTE 7 - OTHER INTANGIBLE ASSETS - Other Intagible Assets Net of Amoritization (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software development costs	$ 7,004,847	$ 7,004,847
Patents and copyrights	4,835,806	4,726,977
Non-competition agreements	4,100,000	4,100,000
Customer Relationships	3,800,000	3,800,000
Less: Accumulated amortization	14,138,997	12,987,320
Other intangible assets - net	$ 5,601,656	$ 6,644,504

NOTE 7 - OTHER INTANGIBLE ASS52

NOTE 7 - OTHER INTANGIBLE ASSETS - Schedule Of Intangle Assets - (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Balance - Beginning of Year	$ 6,644,504	$ 7,719,358	$ 8,950,160
Amounts capitalized	108,829	155,156	113,072
Software or patents written off			(88,796)
Amortization	(1,151,677)	(1,230,010)	(1,255,078)
Balance - End of Year	$ 5,601,656	$ 6,644,504	$ 7,719,358

NOTE 7 - OTHER INTANGIBLE ASS53

NOTE 7 - OTHER INTANGIBLE ASSETS - Forward Looking Schedule of Other Intangible Assets - (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
2,019	$ 980,284
2,020	783,072
2,021	393,102
2,022	391,713
2,023	387,103
Thereafter	2,666,382
Other intangible assets - net	5,601,656	$ 6,644,504
Patents and Copyrights
2,019	204,570
2,020	202,595
2,021	203,102
2,022	201,713
2,023	197,103
Thereafter	829,715
Other intangible assets - net	1,838,798
Non-competition
2,019	585,714
2,020	390,477
2,021
2,022
2,023
Thereafter
Other intangible assets - net	976,191
Customer Relationships
2,019	190,000
2,020	190,000
2,021	190,000
2,022	190,000
2,023	190,000
Thereafter	1,836,667
Other intangible assets - net	$ 2,786,667

NOTE 9 - CONTROLLING AND NONC54

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - HDM Members Equity (Details) - Health Diagnostics Management LLC (HDM) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Class A Members
Opening Members Equity	$ 5,472,799	$ 8,396,575	$ 10,752,169
Share of Net Income	4,221,383	4,058,177	2,886,006
Distributions	(6,135,000)	(6,981,953)	(5,241,600)
Ending Members Equity	3,559,182	5,472,799	8,396,575
Class B Members
Opening Members Equity	27,988,982	23,314,842	22,043,621
Share of Net Income	18,101,940	16,947,624	13,229,621
Distributions	(14,315,000)	(12,273,484)	(11,958,400)
Ending Members Equity	$ 31,775,922	$ 27,988,982	$ 23,314,842

NOTE 9 - CONTROLLING AND NONC55

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - Imperial Members Equity (Details) - Imperial Equity	Jun. 30, 2018USD ($)
Class A Members
Opening Members Equity	$ 1,279,446
Distributions	(202,500)
Buyout	48,054
Redemption	(1,125,000)
Class B Members
Opening Members Equity	15,000,446
Ending Members Equity	$ 15,000,446

NOTE 10 - LONG-TERM DEBT, NOT56

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, 2018	Jun. 30, 2017
Long Term Debt, Notes Payable and Capital Leases	$ 344,367	$ 516,851
Current portion of Long Term Debt, Notes Payable and Capital Leases	38,332	180,090
Long Term Debt, Notes Payable and Capital Leases less Current Portion	$ 306,035	336,761
Long Term Note 1
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 $515,834 as of June 30, 2018.
Long Term Debt, Notes Payable and Capital Leases	$ 336,781	365,406
Long Term Note 2
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 Debt, Notes Payable and Capital Leases
Long Term Note 3
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 Debt, Notes Payable and Capital Leases		143,676
Long Term Note 4
Long Term Debt, Notes Payable and Capital Leases Description	Other (including capital leases for property and equipment).
Long Term Debt, Notes Payable and Capital Leases	$ 7,586	$ 7,769

NOTE 10 - LONG-TERM DEBT, NOT57

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE & CAPITAL LEASES - Maturities Of Long-Term Debt Over 5 Years - (Details)	Jun. 30, 2018USD ($)
Debt Disclosure [Abstract]
2,019	$ 38,332
2,020	32,944
2,021	35,416
2,022	38,013
2,023	40,820
Thereafter	158,842
Long-Term Debt Over Five Years and Thereafter	$ 344,367

NOTE 11 - INCOME TAXES - Compon

NOTE 11 - INCOME TAXES - Components Of Current Benefit For Income Taxes - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Current: Federal	$ 185,000	$ 250,000	$ 360,496
Current: State	265,000	357,235
Federal deferred taxes	(4,132,590)	(4,552,702)	(4,368,901)
State deferred taxes	(787,160)	(416,967)	(278,866)
AMT Credit	(1,200,000)
Benefit for Income Taxes - Net	$ (5,669,750)	$ (4,362,434)	$ (4,287,271)

NOTE 11 - INCOME TAXES - Reconc

NOTE 11 - INCOME TAXES - Reconciliation of Federal Statutory Income Tax Rate (Details)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Note 11 - Income Taxes - Reconciliation Of Federal Statutory Income Tax Rate
Taxes at federal statutory rate	27.70%	35.00%	35.00%
State and local income taxes (benefit), net of federal benefit	4.00%	4.00%	6.00%
Permanent differences (taxes)	0.10%	0.10%	0.20%
Tax Cuts and Jobs Act Rate Change	(33.90%)	0.00%	0.00%
Decrease in the valuation allowance	(24.50%)	(73.00%)	(89.80%)
AMT Credits	(8.50%)	0.00%	0.00%
True ups	(2.80%)	5.00%	0.00%
Effective income tax rate	(37.90%)	(28.90%)	(48.60%)

NOTE 11 - INCOME TAXES - Signif

NOTE 11 - INCOME TAXES - Significant Components Of Company's Deferred Tax Assets And Liabilities - (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Deferred Tax Assets:
Allowance for doubtful accounts	$ 3,262,504	$ 6,255,976
Non Deductible Accruals	752,595	273,435
Net operating carryforwards	20,665,597	39,330,708
Tax credits	4,330,769	5,744,086
Inventory	55,514	130,430
Property and equipment and depreciation	213,781	298,426
Deferred Tax Assets - gross	29,280,760	52,033,061
Valuation allowance	(6,591,749)	(34,171,284)
Total Deferred tax assets	22,689,011	17,861,777
Deferred tax liabilities:
Intangibles	(239,011)	(331,527)
Total deferred tax liabilities	(239,011)	(331,527)
Net Deferred Tax Asset	$ 22,450,000	$ 17,530,250

NOTE 12 - OTHER CURRENT LIABI61

NOTE 12 - OTHER CURRENT LIABILITIES - Other Current Liabilities - (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued salaries, commissions and payroll taxes	$ 3,438,087	$ 1,138,545
Litigation accruals	145,029	145,029
Sales tax payable	2,092,403	2,282,042
Legal and other professional fees	119,262	295,570
Accounting fees	125,000	153,750
Self-funded health insurance reserve	79,129	92,397
Accrued Interest and penalty	1,497,429	2,341,667
Other	681,656	754,278
Other current liabilities	$ 8,177,995	$ 7,203,278

NOTE 13 - COMMITMENTS AND CON62

NOTE 13 - COMMITMENTS AND CONTINGENCIES - Future Minimum Operating Lease Commitments - (Details)	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Facilities And Equipment (Operating Lease) Due in 2019	$ 4,283,452
Facilities And Equipment (Operating Lease) Due in 2020	3,644,287
Facilities And Equipment (Operating Lease) Due in 2021	3,261,226
Facilities And Equipment (Operating Lease) Due in 2022	2,433,479
Facilities And Equipment (Operating Lease) Due in 2023	2,001,906
Facilities And Equipment (Operating Lease) Due Thereafter	5,462,651
Total minimum obligations	$ 21,087,001

NOTE 16 - SEGMENT AND RELATED63

NOTE 16 - SEGMENT AND RELATED INFORMATION - Sumarized Segments - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Net revenues from external customers	$ 81,515,994	$ 78,036,586	$ 73,368,210
Intersegment net revenues	901,250	1,200,000	2,140,000
Income (Loss) from operations	19,684,211	19,096,080	14,355,616
Depreciation and amortization	3,899,851	3,533,564	3,297,289
compensatory element of stock issuances	0	2,397,276	2,006
Total identifiable assets	118,310,945	98,762,566	84,887,606
Capital expenditures	2,886,777	3,006,314	825,288
Manufacturing And Servicing Of Medical Equipment
Net revenues from external customers	9,837,269	11,219,188	10,783,618
Intersegment net revenues	901,250	1,200,000	2,140,000
Income (Loss) from operations	(2,982,778)	(2,292,312)	(1,979,497)
Depreciation and amortization	353,307	324,550	320,843
compensatory element of stock issuances		2,397,276	2,006
Total identifiable assets	32,364,298	29,103,809	28,241,501
Capital expenditures	346,608	212,983	437,695
Management of Diagnostic Imaging Centers
Net revenues from external customers	71,678,725	66,817,398	62,584,592
Income (Loss) from operations	22,666,989	21,388,392	16,335,113
Depreciation and amortization	3,546,544	3,209,014	2,976,446
Total identifiable assets	85,946,647	69,658,676	56,646,105
Capital expenditures	$ 2,540,169	$ 2,793,331	$ 387,593

NOTE 16 - SEGMENT AND RELATED64

NOTE 16 - SEGMENT AND RELATED INFORMATION - Foreign Product Sales - (Details)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Foreign Product Sales	41.50%	55.90%	19.60%
United Arab Emerites
Foreign Product Sales	7.10%	45.40%
Canada
Foreign Product Sales			0.30%
England
Foreign Product Sales	29.90%	4.80%	18.50%
Germany
Foreign Product Sales	4.50%		0.60%
Puerto Rico
Foreign Product Sales		5.70%	0.20%

NOTE 16 - SEGMENT AND RELATED65

NOTE 16 - SEGMENT AND RELATED INFORMATION - Foreign Service and Repair Fees - (Details)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Foreign Service and Repair fees	5.00%	4.60%	5.80%
Spain
Foreign Service and Repair fees			0.30%
Puerto Rico
Foreign Service and Repair fees	1.50%	1.20%	1.50%
Switzerland
Foreign Service and Repair fees	0.20%	0.20%	0.30%
Germany
Foreign Service and Repair fees	1.30%	1.40%	1.50%
England
Foreign Service and Repair fees	0.60%	0.50%	0.50%
United Arab Emerites
Foreign Service and Repair fees	0.30%
Canada
Foreign Service and Repair fees		0.10%	0.30%
Greece
Foreign Service and Repair fees	0.20%	0.20%	0.20%
Australia
Foreign Service and Repair fees	0.90%	1.00%	1.20%

NOTE 17 - ALLOWANCE FOR DOUBT66

NOTE 17 - ALLOWANCE FOR DOUBTFUL ACCOUNTS - Allowance For Doubtful Accounts (Details) (USD $) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Receivables from equipment sales and service contracts
Beginning Balance	$ 190,244	$ 284,279	$ 362,362
Additions (Included in provision for bad debts)
Deductions		94,035	78,083
Ending Balance	190,244	190,244	284,279
Management fee receivable
Beginning Balance	12,859,750	13,553,005	12,879,149
Additions (Included in provision for bad debts)	(1,744,064)	(104,424)	673,856
Deductions	132,664	588,831
Ending Balance	10,983,022	12,859,750	13,553,005
Management fee receivable from related medical practices
Beginning Balance	582,001	392,505	403,047
Additions (Included in provision for bad debts)	1,129,384	582,001
Deductions		392,505	10,542
Ending Balance	1,711,385	582,001	392,505
Medical receivables
Beginning Balance	19,853,318	17,451,782	15,459,156
Additions (Included in provision for bad debts)	17,896,528	16,171,434	14,539,786
Deductions	15,022,148	12,547,160	12,547,160
Ending Balance	$ 22,727,698	$ 19,853,318	$ 17,451,782

NOTE 18 - QUARTERLY FINANCIAL67

NOTE 18 - QUARTERLY FINANCIAL DATA (UNAUDITED) - Unaudited Quarterly Financial Tables- (Details) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Total Revenues - Net									$ 81,515,994	$ 78,036,586	$ 73,368,210
Total Costs and Expenses									61,831,783	58,940,506	59,012,594
Net Income									25,452,185	23,678,798	$ 18,795,517
Quarterly Financial Data [Member]
Total Revenues - Net	$ 21,035,000	$ 20,979,000	$ 20,168,000	$ 19,334,000	$ 20,892,000	$ 20,008,000	$ 18,403,000	$ 18,734,000	81,516,000	78,037,000
Total Costs and Expenses	16,348,000	16,577,000	14,358,000	14,549,000	17,160,000	14,006,000	13,794,000	13,981,000	61,832,000	58,941,000
Net Income	$ 11,349,000	$ 4,262,000	$ 5,240,000	$ 4,601,000	$ 7,123,000	$ 7,122,000	$ 4,934,000	$ 4,500,000	$ 25,452,000	$ 23,679,000
Basic Net Income Per Common Share Available to Common Stockholders	$ 1.47	$ 0.52	$ 0.62	$ 0.55	$ 0.89	$ 0.9	$ 0.64	$ 0.55	$ 3.16	$ 2.98
Diluted Net Income Per Common Share Available to Common Stockholders	$ 1.44	$ 0.51	$ 0.61	$ 0.54	$ 0.87	$ 0.88	$ 0.63	$ 0.54	$ 3.1	$ 2.92

NOTE 19 - BUSINESS COMBINATIO68

NOTE 19 - BUSINESS COMBINATIONS - Acquisition - Turnkey Equipment (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 15, 2017
Goodwill	$ 3,985,397	$ 3,927,123
Turnkey Equipment Management of Great Neck, LLC
Cash Paid			$ 1,312,769
Security deposit			23,775
Total consideration			1,336,544
Net assets at Fair Value			731,582
Goodwill			$ 604,962

NOTE 19 - BUSINESS COMBINATIO69

NOTE 19 - BUSINESS COMBINATIONS - Acquisition - Radwell Leasing (Details) - Radwell Leasing, LLC & Radwell LLC	Mar. 20, 2017USD ($)
Diagnostic equipment	$ 544,375
Leasehold Improvements	126,237
Total Net Assets Acquired	670,612
Stock issued as consideration	791,210
Less: Cash Received	(120,598)
Total consideration	$ 670,612

NOTE 19 - BUSINESS COMBINATIO70

NOTE 19 - BUSINESS COMBINATIONS - Acquisition - TK2 Equipment Management (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Goodwill	$ 3,985,397	$ 3,927,123
TK2 Equipment Management, LLC
Cash Paid			$ 4,223,567
Net assets at Fair Value			2,861,507
Goodwill			$ 1,555,060

NOTE 19 - BUSINESS COMBINATION

NOTE 19 - BUSINESS COMBINATIONS - Proforma Results (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Total Revenues - Net	$ 81,515,994	$ 78,036,586	$ 73,368,210
Common Shares
TK2 Equipment Management, LLP Pro forma
Basic Net Income Per Common Share	$ 3.16	$ 2.98	$ 2.43
Diluted Net Income Per Common Share	$ 3.1	$ 2.92	$ 2.38
Weighted Average Shares Outstanding - Basic	6,287,510	6,161,599	6,050,893
Weighted Average Shares Outstanding - Diluted	6,415,014	6,289,103	6,178,397
Class C Common Stock
TK2 Equipment Management, LLP Pro forma
Basic Net Income Per Common Share	$ 0.89	$ 0.82	$ 0.68
Diluted Net Income Per Common Share	$ 0.89	$ 0.82	$ 0.68
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 & Turnkey Equipment Management, LLC
Total Revenues - Net			$ 73,368,210
TK2 Equipment Management, LLP Pro forma
Net Income (TK2 Equipment Management, LLP Pro forma)			$ 16,088,263
Weighted Average Shares Outstanding - Basic			6,050,893
Weighted Average Shares Outstanding - Diluted			6,178,397
TK2 Equipment Management, LLC & Turnkey Equipment Management, LLC | Common Shares
TK2 Equipment Management, LLP Pro forma
Net Income (TK2 Equipment Management, LLP Pro forma)			$ 15,042,842
Basic Net Income Per Common Share			$ 2.49
Diluted Net Income Per Common Share			$ 2.43
TK2 Equipment Management, LLC & Turnkey Equipment Management, LLC | Class C Common Stock
TK2 Equipment Management, LLP Pro forma
Net Income (TK2 Equipment Management, LLP Pro forma)			$ 266,248
Basic Net Income Per Common Share			$ 0.7
Diluted Net Income Per Common Share			$ 0.7
Weighted Average Shares Outstanding - Basic			382,513
Weighted Average Shares Outstanding - Diluted			382,513
TK2 Equipment Management, LLC & Turnkey Equipment Management, LLC | Class A Non-Voting Preferred Stock
TK2 Equipment Management, LLP Pro forma
Net Income (TK2 Equipment Management, LLP Pro forma)			$ 779,173

NOTE 1 - DESCRIPTION OF BUSIN72

NOTE 1 - DESCRIPTION OF BUSINESS, LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - USD ($)	Jun. 30, 2016	Jul. 02, 2015	May 01, 2012
Note 1 - Description Of Business Liquidity And Capital Resources
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%
Percent of management of diagnostic imaging centers business segment being conducted by HDM.		100.00%
Contribution by HMCA of all its assets and liabilities to Imperial Management Services, LLC (Imperial)			100.00%

NOTE 2 - SUMMARY OF SIGNIFICA73

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Jun. 30, 2018USD ($)shares	Jun. 30, 2017USD ($)shares	Jun. 30, 2016USD ($)shares
Maintenance and Repair Expenses for Property and Equipment	$ 1,451,000	$ 1,116,000	$ 1,113,000
Management Agreements with Company - Total Medical Practices	22
Management Agreements with Company - Related Medical Practices	3
Management Agreements with Company - Located in New York State	19
Advertising Costs	$ 607,000	531,000	535,000
Shipping and Handling Expense	$ 9,370	$ 8,224	$ 11,077
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	$ 17,478,000
Federally insured limit (FDIC)	$ 250,000
Net revenues from related parties as a percentage of consolidated net revenues	11.00%	11.00%	10.00%
Net management fee receivables from the related medical practices as a percentage of the consolidated accounts receivable	12.00%	13.00%	12.00%
Diagnostic Imaging Facility
Contractual fees per month for services rendered minimum	$ 66,000
Contractual fees per month for services rendered maximum	$ 439,000

NOTE 3 - ACCOUNTS RECEIVABLE,74

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - (Details Narrative)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Note 3 - Accounts Receivable Medical Receivable And Management And Other Fees Receivable -
Percentage of PC's net revenue derived from no-fault and personal injury protection claims	65.00%	62.00%	59.00%
Percentage of consolidated net revenue from management fees charged to related party medical practices	11.00%	11.00%	10.00%

NOTE 6 - PROPERTY AND EQUIPME75

NOTE 6 - PROPERTY AND EQUIPMENT- (Details Narrative) - Property, Plant and Equipment [Member] - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Depreciation and amortization of property and equipment	$ 2,748,174	$ 2,303,554	$ 2,042,211
Cost and accumulated depreciation basis of retired assets that were fully depreciated	$ 1,849,409

NOTE 7 - OTHER INTANGIBLE ASS76

NOTE 7 - OTHER INTANGIBLE ASSETS - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Weighted average amortization period (years)	11 years 37 days
Patents and Copyrights
Amortization other intangible assets	$ 202,630	$ 194,296	$ 187,553
Capitalized software development costs
Amortization other intangible assets	173,333	260,000	291,810
Non-competition
Amortization other intangible assets	585,714	585,714	585,714
Customer Relationships
Amortization other intangible assets	$ 190,000	$ 190,000	$ 190,000

NOTE 8 - CAPITAL STOCK - (Detai

NOTE 8 - CAPITAL STOCK - (Details Narrative) - shares	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Aug. 10, 2010	Apr. 23, 2010
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	716,876
Shares issued under 2010 Stock Bonus Plan	0	193,461	146
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 Members
Terms of Conversion	Class B common stock is convertible into shares of common stock on a one-for-one basis.
Shares Outstanding	There were 146, 146 and 146 of such shares outstanding at June 30, 2018, 2017 and 2016, 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 NONC78

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - (Details Narrative)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2016USD ($)	May 02, 2016USD ($)	May 01, 2015USD ($)	Jan. 08, 2015USD ($)	May 01, 2014USD ($)	Mar. 31, 2014USD ($)	Mar. 05, 2013USD ($)	Feb. 13, 2013	May 02, 2011USD ($)
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 | Health Diagnostics Management LLC (HDM)
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)								12
Health Diagnostics Management (HDM) purchase of Other MRI Centers from Health Diagnostics, LLC (HD)								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 Management 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 HMCAs 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 Companys 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, 2020	Jun. 30, 2018	Jun. 30, 2017
Note 11 - Income Taxes -
Total Deferred tax assets		$ 22,689,011	$ 17,861,777
Reduction in valuation allowance		27,600,000	11,131,000
Deferred Tax Liability		239,011	$ 331,527
Net Operating Loss (NOL) Carryforwards Available to Offset Future Taxable Income		82,662,000
Alternate Minimum Tax Credits		1,200,000
First installment	$ 600,000
Revalued Deferred Tax Assets after accounting for Tax Cut and Jobs Act		30,200,000
Revalued deferred tax assets		16,000,000
Deferred Tax Asset before Revaluation for Tax Cut and Jobs Act		46,200,000
NY State Tax Credit Carryforwards		1,134,000
Research and Development Tax Credit Carryforwards		$ 4,257,000

NOTE 13 - COMMITMENTS AND CON80

NOTE 13 - COMMITMENTS AND CONTINGENCIES - (Details Narrative) - USD ($)	12 Months Ended			120 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2027
Rent Expense	$ 4,762,000	$ 4,505,000	$ 4,222,000
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	193,979
Average Monthly Payment for Stipulation Agreements	15,859
Recorded sales tax obligations - principal	2,092,000
Recorded sales tax obligations - interest and penalties	1,452,000
Reserve for Self-Funded Health Insurance Program	$ 79,000	$ 92,000
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, 2018.
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. During October 2016, the Company settled with the plaintiff for $300,000.
Settlement of Case (value)	$ 300,000
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 is now in discovery. The case was settled for $258,400 plus interest on February 18, 2016.
Settlement of Case (value)	$ 258,400

NOTE 14 - SUPPLEMENTAL CASH F81

NOTE 14 - SUPPLEMENTAL CASH FLOW INFORMATION - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Note 14 - Supplemental Cash Flow Information -
Interest paid	$ 44,767	$ 162,022	$ 356,106
Income taxes paid	$ 345,000	739,889	$ 360,496
Issuance of stock for goods and services, Value		$ 2,239,292
Issuance of stock for goods and services, Shares		106,600

NOTE 15 - DUE TO RELATED PARTY

NOTE 15 - DUE TO RELATED PARTY MEDICAL PRACTICES - (Details Narrative)	1 Months Ended	12 Months Ended
	Jun. 30, 2009	Jun. 30, 2018
Tallahassee Scanning Services, PA
Related Party Transaction, Description of Transaction	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, 2018 and 2017 was $134,880.
A Billing Company
Related Party Transaction, Description of Transaction		The CEO and President of the Company is a minority owner 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. On June 1, 2017, the Company also entered into a one year renewable agreement to provide IT services to the billing company for a monthly fee of $23,884.
Bensonhurst MRI Limited Partnership
Related Party Transaction, Description of Transaction		Bensonhurst MRI Limited Partnership, in which the 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.
LimitedLiabilityCompany
Related Party Transaction, Description of Transaction		A limited liability company of which the 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.
Entities
Related Party Transaction, Description of Transaction		A company of which the 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 performed management services. The Company acquired this through a merger transaction for $1,312,766.
Company_1
Related Party Transaction, Description of Transaction		A company in which the 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 16 - SEGMENT AND RELATED83

NOTE 16 - SEGMENT AND RELATED INFORMATION - (Details Narrative)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Note 16 - Segment And Related Information -
Export Sales of medical equipment	41.50%	55.90%	19.60%
Foreign Revenues of service and repair of medical equipment	5.00%	4.60%	5.80%

NOTE 20 - SUBSEQUENT EVENTS - (

NOTE 20 - SUBSEQUENT EVENTS - (Details Narrative)	2 Months Ended
	Sep. 13, 2018USD ($)shares
Note 20 - Subsequent Events -
Shares of common stock issued in settlement of liabilities (Shares). | shares	64,416
Value of Shares Issued in Settlement of Liabilities (Value) | $	$ 1,800,000