FONAR (FONR) 10-K 1 Oct 20 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2020	Sep. 15, 2020	Dec. 31, 2019
Entity Registrant Name	FONAR CORP
Entity Central Index Key	0000355019
Document Type	10-K
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity File Number	0-10248
Is Entity Incorporation State Country Code	DE
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity Interactive Data Current	Yes
Is Entity's Reporting Status Current?	Yes
Is Entity a Small Business	true
Entity Filer Category	Non-accelerated Filer
Is Entity an Emerging Growth Company	false
Is Entity a Shell Company	false
Entity Public Float			$ 123,000,000
Common Shares
Entity Common Stock, Shares Outstanding		6,447,463
Class B Members
Entity Common Stock, Shares Outstanding		146
Class C Common Stock
Entity Common Stock, Shares Outstanding		382,513
Class A Non-Voting Preferred Stock
Entity Common Stock, Shares Outstanding		313,438

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Current Assets:
Cash and cash equivalents	$ 36,802,342	$ 13,882,013
Short term investments	31,884	15,094,816
Accounts receivable - net	4,312,999	3,736,662
Account receivable - related parties	5,988
Medical receivables -net	16,171,782	15,728,935
Management and other fees receivable - net	27,437,768	25,709,489
Management and other fees receivable - related party medical practices - net	6,896,482	6,500,614
Costs and estimated earnings in excess of billings on uncompleted contracts	152,833	525,110
Inventories	1,648,770	1,798,166
Income taxes receivable	671,185	600,000
Prepaid expenses and other current assets	1,757,499	1,512,917
Total Current Assets	95,889,532	85,088,722
Income taxes receivable		600,000
Accounts receivable - long term	2,730,071
Deferred income tax asset	18,809,757	20,937,747
Property and equipment - net	21,364,034	16,985,617
Right-of-use asset - net	31,392,458
Right-of-use-asset - financing lease	1,325,870
Goodwill	3,985,397	3,985,397
Other intangible assets - net	4,109,129	4,755,675
Other Assets	653,132	1,207,052
Total Assets	180,259,380	133,560,210
Current Liabilities:
Current portion of long-term debt and capital leases	108,379	40,530
Accounts payable	1,965,259	1,861,227
Other current liabilities	8,185,098	7,577,416
Operating lease liability - current portion	3,370,149
Financing lease liability - current portion	74,699
Unearned revenue on service contracts	4,105,265	3,812,115
Customer deposits	854,579	798,651
Total Current Liabilities	18,663,428	14,089,939
Long-Term Liabilities:
Unearned revenue on service contracts	2,655,605
Deferred Income Tax Liability	234,106	243,267
Due to related party medical practices	92,663	92,663
Operating lease liability - net of current portion	30,104,464
Financing lease liability - net of current portion	1,251,171
Long-term debt and capital leases, less current portion	865,416	273,112
Other Liabilities	150,311	749,126
Total Long-Term Liabilities	35,353,736	1,358,168
Total Liabilities	54,017,164	15,448,107
STOCKHOLDERS' EQUITY:
Paid-in capital in excess of par value	183,076,888	181,086,517
Accumulated deficit	(56,215,251)	(64,455,456)
Treasury stock, at cost - 11,643 shares of common stock at June 30, 2020 and 2019	(675,390)	(675,390)
Total Fonar Corporation Stockholder Equity	126,186,963	115,956,378
Noncontrolling interests	55,253	2,155,725
Total Stockholders' Equity	126,242,216	118,112,103
Total Liabilities and Stockholders' Equity	180,259,380	133,560,210
Class A Non-Voting Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred Stock Value	31	31
Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred Stock Value
Class B Members
STOCKHOLDERS' EQUITY:
Common Stock Value
Common Shares
STOCKHOLDERS' EQUITY:
Common Stock Value	647	638
Class C Common Stock
STOCKHOLDERS' EQUITY:
Common Stock Value	$ 38	$ 38

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Jun. 30, 2019
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
Preferred Stock, Issued
Preferred Stock, Outstanding
Common Shares
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	8,500,000	8,500,000
Common Stock, Issued	6,459,106	6,369,125
Common Stock, Outstanding	6,447,463	6,357,482
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

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
REVENUES
Patient fee revenue, net of contractual allowances and discounts	$ 22,495,260	$ 24,207,536
Product sales - net	297,613	1,751,221
Service and repair fees - net	8,055,490	8,152,173
Service and repair fees - related parties - net	110,000	110,000
Management and other fees - net	44,565,405	43,617,093
Management and other fees - related party medical practices - net	10,166,694	9,354,864
Total Revenues - Net	85,690,462	87,192,887
COSTS AND EXPENSES
Costs related to product sales	745,375	778,734
Costs related to service and repair fees	2,731,397	3,009,097
Costs related to service and repair fees -related parties	37,298	40,603
Costs related to patient fee revenue	10,880,265	10,789,308
Costs related to management and other fees	22,951,301	23,419,796
Costs related to management and other fees - related medical practices	5,951,189	5,947,055
Research and development	2,025,376	1,812,347
Selling, general and administrative, inclusive of compensatory element of stock issuances of $0 and $1,990,380 for the years ended June 30, 2020 and 2019 respectively	26,717,345	19,261,755
Total Costs and Expenses	72,039,546	65,058,695
Income from Operations	13,650,916	22,134,192
Other Income and (Expenses):
Interest expense	(74,321)	(98,636)
Investment income	502,145	482,573
Other income (expense)- net	70,771	1,065
Income before (provision) benefit for income taxes and noncontrolling interests	14,149,511	22,519,194
Provision for Income Taxes	(2,444,778)	(2,005,520)
Net Income	11,704,733	20,513,674
Net Income - Noncontrolling Interests	(3,464,528)	(5,196,543)
Net Income - Attributable to FONAR	$ 8,240,205	$ 15,317,131
Basic Net Income Per Share	$ 1.28	$ 2.41
Weighted Average Basic Shares Outstanding	6,443,713	6,354,103
Common Shares
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 7,735,650	$ 14,366,798
Basic Net Income Per Share	$ 1.2	$ 2.26
Diluted Net Income Per Share	$ 1.18	$ 2.22
Weighted Average Basic Shares Outstanding	6,443,713	6,354,103
Weighted Average Diluted Shares Outstanding	6,571,217	6,481,607
Class A Non Voting Preferred Stock
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 376,055	$ 708,302
Class C Common Stock
Other Income and (Expenses):
Net Income - Attributable to FONAR	$ 128,500	$ 242,031
Basic Net Income Per Share	$ 0.34	$ 0.63
Diluted Net Income Per Share	0.34	0.63
Basic and Diluted Income Per Share	$ 0.34	$ 0.63
Weighted Average Basic Shares Outstanding	382,513	382,513
Weighted Average Diluted Shares Outstanding	382,513	382,513
Weighted Average Basic and Diluted Shares Outstanding	382,513	382,513

CONSOLIDATED STATEMENTS OF IN_2

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Compensatory element of stock issuances		$ 1,990,380

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Class A Non Voting Preferred	Common Shares	Class C Common Stock	Paid-in Capital in Excess of Par Value	Accumulated Deficit	Notes Receivable From Employee Stockholders	Treasury Stock	Noncontrolling Interests	Total
Balance - Beginning, Value at Jun. 30, 2018	$ 31	$ 630	$ 38	$ 179,131,780	$ (79,772,587)	$ (9,213)	$ (675,390)	$ 3,559,182	$ 102,234,471
Balance - Beginning, Shares at Jun. 30, 2018		6,287,511
Net Income					15,317,131			5,196,543	20,513,674
Stock issued to employees under stock bonus plans, Value		$ 8		1,954,737					1,954,745
Stock issued to employees under stock bonus plans, Shares		69,971
Payments on notes receivable from employee stockholders						9,213			9,213
Distributions to noncontrolling interests								(6,600,000)	(6,600,000)
Balance - Ending, Value at Jun. 30, 2019	31	$ 638	38	181,086,517	(64,455,456)		(675,390)	2,155,725	118,112,103
Balance - Ending, Shares at Jun. 30, 2019		6,357,482
Net Income					8,240,205			3,464,528	11,704,733
Stock issued to employees under stock bonus plans, Value		$ 9		1,990,371					1,990,380
Stock issued to employees under stock bonus plans, Shares		89,981
Payments on notes receivable from employee stockholders
Distributions to noncontrolling interests								(5,565,000)	(5,565,000)
Balance - Ending, Value at Jun. 30, 2020	$ 31	$ 647	$ 38	$ 183,076,888	$ (56,215,251)		$ (675,390)	$ 55,253	$ 126,242,216
Balance - Ending, Shares at Jun. 30, 2020		6,447,463

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 11,704,733	$ 20,513,674
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,908,648	3,836,491
Provision (Recovery) for bad debts	5,695,420	(978,730)
Deferred income tax - net	2,118,829	1,755,520
Income tax receivable	528,815
Amortization on right-of-use assets	1,005,560
Stock issued for costs and expenses	1,990,380	1,954,745
(Increase) decrease in operating assets, net:
Accounts, medical and management fee receivables	(10,797,456)	(6,134,095)
Notes receivable	28,889	(12,689)
Costs and estimated earnings in excess of Billings on uncompleted contracts	372,277	(438,472)
Inventories	149,396	(366,786)
Prepaid expenses and other current assets	(133,287)	(79,641)
Other assets	(161,350)	329
Increase (decrease) in operating liabilities, net:
Accounts payable	104,032	560,977
Other current liabilities	3,556,437	(980,394)
Customer advances	55,928	(59,544)
Operating lease liabilities	159,657
Other Liabilities	115,855	11,943
Due to related party medical practices		(134,880)
NET CASH PROVIDED BY OPERATING ACTIVITIES	20,402,763	19,448,448
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(7,522,997)	(3,355,456)
Proceeds of Short term investment	15,062,932
Purchase of Short term investment		(15,094,816)
Cost of patents	(117,522)	(128,393)
NET CASH USED IN INVESTING ACTIVITIES	7,422,413	(18,578,665)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of borrowings and capital lease obligations	(4,957,936)	(30,725)
Proceeds from debt	5,618,089
Repayment of notes receivable from employee stockholders		9,213
Distributions to noncontrolling interests	(5,565,000)	(6,600,000)
NET CASH USED IN FINANCING ACTIVITIES	(4,904,847)	(6,621,512)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	22,920,329	(5,751,729)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR	13,882,013	19,633,742
CASH AND CASH EQUIVALENTS - END OF YEAR	$ 36,802,342	$ 13,882,013

NOTE 1 - DESCRIPTION OF BUSINES

NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY AND CAPITAL RESOURCES	12 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY AND CAPITAL RESOURCES	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 July 1, 2015, the Company restructured the corporate organization of the management of diagnostic imaging centers segment of our business. The reorganization was structured to more completely integrate the operations of Health Management Corporation of America and HDM. Imperial contributed all of its assets (which were utilized in the business of Health Management Corporation of America) to HDM and received a 24.2% interest in HDM. Health Management Corporation of America retained a direct ownership interest of 45.8% in HDM, and the original investors in HDM retained a 30.0% ownership interest in the newly expanded HDM. The entire management of diagnostic imaging centers business segment is now being conducted by HDM. During March 2020 the global pandemic of COVID-19 has caused turbulence and uncertainty in the United States and international markets and economies which has adversely effected our workforce, liquidity, financial conditions, revenues, profitability and business operations. Generally COVID-19 had caused us to require that much of our workforce work from home and has restricted the ability of our personnel to travel for marketing purposes or to service our customers. The Company experienced a sudden drop in scan volume for a short term period and while the Company is not back to pre-COVID-19 levels, the volume has risen. During the 4th quarter of fiscal 2020, the Company was able to enact certain decisions to allow the Company to survive during the global pandemic and from further losses or additional decreases in scan volume. The Company immediately enacted wide scale furloughs, deferment of up to 50% of management salaries, halted variable compensation plans and rent deferrals were negotiated with the majority of all landlords. The Company also received some government stimulus funds from the Paycheck Protection Program (‘PPP’) program and Medicare advances/stimulus payments. Although we are unable to predict if there will be additional consequences on our operations from the continuing global pandemic of COVID-19, the Company believes with the positive cash flows, low debt and cash on hand, it will be able to continue operations going forward.

NOTE 2 - SUMMARY OF SIGNIFICANT

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships. The operating activities of subsidiaries are included in the accompanying consolidated statements from the date of acquisition. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The most significant estimates relate to receivable allowances, intangible assets, income taxes and related tax asset valuation allowances, useful lives of property and equipment, contingencies, revenue recognition and the assessment of litigation. In addition, healthcare industry reforms and reimbursement practices will continue to impact the Company's operations and the determination of contractual and other allowance estimates. Actual results could differ from those estimates. Inventories Inventories consist of purchased parts, components and supplies, as well as work-in-process, and are stated at the lower of cost, determined on the first-in, first-out method, or market. Property and Equipment Property and equipment procured in the normal course of business is stated at cost. Property and equipment purchased in connection with an acquisition is stated at its estimated fair value, generally based on an appraisal. Property and equipment is being depreciated for financial accounting purposes using the straight-line method over their estimated useful lives. Leasehold improvements are being amortized over the shorter of the useful life or the remaining lease term. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation of these assets are removed from the accounts and the resulting gains or losses are reflected in the results of operations. Expenses for maintenance and repairs are charged to operations. Renewals and betterments are capitalized. Maintenance and repair expenses totaled approximately $1,870,000 and $1,557,000 for the years ended June 30, 2020 and 2019 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. Other Intangible Assets 1) Patents and Copyrights Amortization is calculated on the straight-line basis over 15 years. 2) Non-Competition Agreements The non-competition agreements are being amortized on the straight line basis over the length of the agreement (7 years). 3) 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 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, 2020, the Company has twenty one management agreements of which three are with PC’s owned by Raymond V. Damadian, M.D., Chairman of the Board of FONAR (“the Related medical practices”) and eighteen are with PC’s, which are all located in the state of New York (“the New York PC’s”), owned by two unrelated radiologists. The contractual fees for services rendered to the PCs consists of fixed monthly fees per diagnostic imaging facility ranging from approximately $77,000 to $522,000. All fees are re-negotiable at the anniversary of the agreements and each year thereafter. The Company records a provision for bad debts for estimated uncollectible fees, which is reflected in other operating expenses on the Statement of Operations. All fees are re-negotiable at the anniversary of the agreements and each year thereafter. On July 1, 2018, the Company adopted the new revenue recognition accounting standard issued by the Financial Accounting Standards Board (“FASB”) and codified in the ASC as topic 606 (“ASC 606”). The revenue recognition standard in ASC 606 outlines a single comprehensive model for recognizing revenue as performance obligations, defined in a contract with a customer as goods or services transferred to the customer in exchange for consideration, are satisfied. The standard also requires expanded disclosures regarding the Company’s revenue recognition policies and significant judgments employed in the determination of revenue. The Company applied the modified retrospective approach to all contracts when adopting ASC 606. As a result, at the adoption of ASC 606 the majority of what was previously classified as the provision for bad debts in the statement of operations is now reflected as implicit price concessions (as defined in ASC 606) and therefore included as a reduction to net operating revenues in 2019. For changes in credit issues not assessed at the date of service, the Company will prospectively recognize those amounts in other operating expenses on the statement of operations. For periods prior to the adoption of ASC 606, the provision for bad debts has been presented consistent with the previous revenue recognition standards that required it to be presented separately as a component of net operating revenues. Additionally, upon adoption of ASC 606 the allowance for doubtful accounts of approximately $22.7 million as of July 1, 2018 was reclassified as a component of net patient accounts receivable. Other than these changes in presentation on the condensed consolidated statement of operations and condensed consolidated balance sheet, the adoption of ASC 606 did not have a material impact on the consolidated results of operations for the year ended June 30, 2018 and did not have a material impact on its consolidated results of operations on a prospective basis. Our revenues generally relate to net patient fees received from various payers and patients themselves under contracts in which our performance obligations are to provide diagnostic services to the patients. Revenues are recorded during the period our obligations to provide diagnostic services are satisfied. Our performance obligations for diagnostic services are generally satisfied over a period of less than one day. The contractual relationships with patients, in most cases, also involve a third-party payer (Medicare, Medicaid, managed care health plans and commercial insurance companies, including plans offered through the health insurance exchanges) and the transaction prices for the services provided are dependent upon the terms provided by (Medicare and Medicaid) or negotiated with (managed care health plans and commercial insurance companies) the third-party payers. The payment arrangements with third-party payers for the services we provide to the related patients typically specify payments at amounts less than our standard charges and generally provide for payments based upon predetermined rates per diagnostic services or discounted fee-for-service rates. Management continually reviews the contractual estimation process to consider and incorporate updates to laws and regulations and the frequent changes in managed care contractual terms resulting from contract renegotiations and renewals. The Company’s patient fee revenues, net of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2020 and 2019 are summarized in the following table. For the Years Ended June 30 2020 2019 Commercial Insurance/ Managed Care $ 4,545,987 $ 5,218,656 Medicare/Medicaid 1,038,288 1,172,543 Workers' Compensation/Personal Injury 16,028,737 16,790,025 Other 882,248 1,026,312 Net Patient Fee Revenue $ 22,495,260 $ 24,207,536 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 $566,000 and $538,000 and for the years ended June 30, 2020 and 2019, 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 $12,056 and $13,695 for the years ended June 30, 2020 and 2019 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, 2020 and 2019. 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, 2020 and 2019, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. June 30, 2020 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 8,240,205 $ 7,735,650 $ 128,500 Denominator: Weighted average shares outstanding 6,443,713 6,443,713 382,513 Basic income per common share $ 1.28 $ 1.20 $ 0.34 Diluted Denominator: Weighted average shares outstanding 6,443,713 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,571,217 382,513 Diluted income per common share $ 1.18 $ 0.34 June 30, 2019 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 15,371,131 $ 14,366,798 $ 242,031 Denominator: Weighted average shares outstanding 6,354,103 6,354,103 382,513 Basic income per common share $ 2.41 $ 2.26 $ 0.63 Diluted Denominator: Weighted average shares outstanding 6,354,103 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,481,607 382,513 Diluted income per common share $ 2.22 $ 0.63 Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, cash in banks, investments in certificates of deposit with original maturities of 90 days or less, and money market funds. Short Term Investments Short term investments include certificates of deposit with original maturities of greater than 90 days. 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, 2020, the Company had cash on deposit of approximately $33,444,000 in excess of federally insured limits of $250,000. Related Parties: Net revenues from related parties accounted for approximately 12% and 11% of the consolidated net revenues for the years ended June 30, 2020 and 2019, respectively. Net management fee receivables from the related party medical practices accounted for approximately 13% and 13% of the consolidated accounts receivable for the years ended June 30, 2020 and 2019, 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, 2020 and 2019, 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 Company has established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring and revaluing fair value. These tiers include, Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. 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. Short term investments: The carrying amount approximates fair value because of the short-term maturity of those instruments. Such amounts include Certificates of Deposits with original maturities greater than 90 days. These securities are classified as Level 1. 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 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. The Company adopted the Standard on July 1, 2020 and the impact of adopting this guidance will have no material impact on our Consolidated 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 standard was effective for us beginning July 1, 2019. We have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply the standard to the comparative periods presented in the consolidated financial statements. We have also elected the transition package of thee practical expedients permitted within the standard which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and indirect costs. The adoption of this guidance had a material impact on the Company’s balance sheet by virtue of including the present value of its future operating lease payments as a liability of $33.3 million and related right-to-use lease assets as of July 1, 2019. At the time of adoption of this guidance we had no significant financing leases. The Company accounts for its various operating leases in accordance with Accounting Standards Codification (‘ASC’) 842 – Lease, as updated by ASU 2016-02. At the inception of a lease, the Company recognizes right-of-use lease assets and related lease liabilities measured at present value of future lease payments on its balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease. Our most common initial term varies in length from 2 to 10 years. Including renewal options negotiated with the landlord, we have a total span of 2 to 16 years at the facilities we lease. The Company reviewed its contracts with vendors and customers, determining that its right-to-use lease assets consisted of only office space operating leases. In determining the right-to-use lease assets and liabilities, the Company did recognize lease extension options which the Company feels would be reasonably exercised. Also included in other current assets is a $202,268 receivable from a landlord for tenant improvements. Our incremental borrowing rate (“IBR”) used to discount the stream of operating lease payments is closely related to the interest rates available to the Company. A reconciliation of operating and financing lease payments undiscounted cash flows to lease liabilities recognized as of June 30, 2020 is as follows: Year Ending June 30, Operating Lease Payments Financing Lease Payments 2021 $ 5,078,892 $ 122,172 2022 4,826,934 244,343 2023 4,787,845 244,343 2024 4,501,027 244,343 2025 4,445,344 244,343 Thereafter 19,607,295 407,240 Present value discount (9,772,724 ) (180,914 ) Total lease liability $ 33,474,613 $ 1,325,870 Weighted Average Remaining Lease Term Operating leases - years 10.4 Finance lease - years 6.6 Weighted Average Discount Rate Operating leases 5.5 % Finance lease 3.6 % The components of lease expense were as follows: For year ended June 30, 2020 Operating lease cost $ 5,135,604 Finance lease cost: Depreciation of leased equipment $ — Interest on lease liabilities — Total finance lease cost $ — Supplemental cash flow information related to leases was as follows: For year ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,170,977 Financing cash flows from financing leases — Right-of-use & equipment assets obtained in exchange for lease obligations: Operating leases(1) 34,786,611 Financing leases 1,325,871 (1) Amounts for the year ended June 30, 2020 include the transition adjustment for the adoption of topic 842 of $31,651,110. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2020 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 2020 or 2019, 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, 2020
Receivables [Abstract]
NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE	NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE 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. Long Term Accounts Receivable The Company will generate revenue from long-term, non-cancellable contracts to provide service and repair services. Future revenue to be recognized over the following four years at June 30, 2020 are as follows: 2022 $ 821,535 2023 744,660 2024 744,660 2025 344,750 Total $ 2,655,605 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 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 66% and 67%, respectively, of the PCs’ 2020 and 2019 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 12% and 11%, of the consolidated net revenues for the years ended June 30, 2020 and 2019, 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, 2020 and 2019. For the Year Ended June 30, 2020 2019 Total Facilities Owned or Managed (at Beginning of Year) 26 26 Facilities Added by: Acquisition — — Internal development — — Managed Facilities Closed (1 ) — Total Facilities Owned or Managed (at End of Year) 25 26

NOTE 4 - COSTS AND ESTIMATED EA

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	12 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS AND CUSTOMER ADVANCES	NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS Information relating to uncompleted contracts as of June 30, 2020 and 2019 is as follows: As of June 30, 2020 2019 Costs incurred on uncompleted contracts $ 448,437 $ 448,437 Estimated earnings 309,248 1,088,675 757,685 1,537,112 Less: Billings to date 604,852 1,012,002 $ 152,833 $ 525,110

NOTE 5 - INVENTORIES

NOTE 5 - INVENTORIES	12 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
NOTE 5 - INVENTORIES	NOTE 5 – INVENTORIES Inventories included in the accompanying consolidated balance sheets consist of: As of June 30, 2020 2019 Purchased parts, components and supplies $ 1,544,036 $ 1,639,777 Work-in-process 104,734 158,389 $ 1,648,770 $ 1,798,166

NOTE 6 - PROPERTY AND EQUIPMENT

NOTE 6 - PROPERTY AND EQUIPMENT	12 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
NOTE 6 - PROPERTY AND EQUIPMENT	NOTE 6 - PROPERTY AND EQUIPMENT Property and equipment, at cost, less accumulated depreciation and amortization, at June 30, 2020 and 2019, is comprised of: As of June 30, 2020 2019 Diagnostic equipment $ 28,434,063 $ 26,090,218 Research, development and demonstration equipment 5,901,961 3,605,906 Machinery and equipment 2,069,055 2,069,055 Furniture and fixtures 3,291,666 3,122,102 Leasehold improvements 10,736,825 8,023,292 Building 939,614 939,614 51,373,184 43,850,187 Less: Accumulated depreciation and amortization 30,009,150 26,864,570 $ 21,364,034 $ 16,985,617 Depreciation and amortization of property and equipment for the years ended June 30, 2020 and 2019 was $3,144,580 and $2,862,117, respectively.

NOTE 7 - OTHER INTANGIBLE ASSET

NOTE 7 - OTHER INTANGIBLE ASSETS	12 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
NOTE 7 - OTHER INTANGIBLE ASSETS	NOTE 7 - OTHER INTANGIBLE ASSETS Other intangible assets, net of accumulated amortization, at June 30, 2020 and 2019 are comprised of: As of June 30, 2020 2019 Capitalized software development costs $ 7,004,847 $ 7,004,847 Patents and copyrights 5,081,721 4,964,199 Non-competition agreements 4,100,000 4,100,000 Customer relationships 3,800,000 3,800,000 19,986,568 19,869,046 Less: Accumulated amortization 15,877,439 15,113,371 $ 4,109,129 $ 4,755,675 The estimated amortization of other intangible assets for the five years ending June 30, 2025 and thereafter is as follows: For the Years Ending June 30, Total Patents and Copyrights Non- Customer Relationships 2021 $ 370,631 $ 180,631 $ — $ 190,000 2022 369,241 179,241 — 190,000 2023 372,700 182,700 — 190,000 2024 372,399 182,399 — 190,000 2025 359,378 169,378 — 190,000 Thereafter 2,264,780 808,113 — 1,456,667 $ 4,109,129 $ 1,702,462 $ — $ 2,406,667 The weighted average amortization period for other intangible assets is 12.0 years and they have no expected residual value. Information related to the above intangible assets for the years ended June 30, 2020 and 2019 is as follows: As of June 30, 2020 2019 Balance – Beginning of Year $ 4,755,675 $ 5,601,656 Amounts capitalized 117,522 128,393 Software or patents written off — — Amortization (764,068 ) (974,374 ) Balance – End of Year $ 4,109,129 $ 4,755,675 Amortization of patents and copyrights for the years ended June 30, 2020 and 2019 amounted to $183,592 and $198,660, respectively. Capitalized software development costs were fully amortized as of June 30, 2018. Amortization of non-competition agreements for the years ended June 30, 2020 and 2019 amounted to $390,476 and $585,714, respectively. Amortization of customer relationships for the years ended June 30, 2020 and 2019 amounted to $190,000 and $190,000, respectively.

NOTE 8 - CAPITAL STOCK

NOTE 8 - CAPITAL STOCK	12 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
NOTE 8 - CAPITAL STOCK	NOTE 8 - CAPITAL STOCK Common Stock Cash dividends payable on the common stock shall, in all cases, be on a per share basis, one hundred twenty percent (120%) of the cash dividend payable on shares of Class B common stock and three hundred sixty percent (360%) of the cash dividend payable on a share of Class C common stock. Class B Common Stock Class B common stock is convertible into shares of common stock on a one-for-one basis. Class B common stock has 10 votes per share. There were 146 of such shares outstanding at June 30, 2020 and 2019. 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, 2020, 556,924 shares of common stock of FONAR were available for future grant under this plan. For the years ended June 30, 2020 and 2019, 89,981 and 69,971 shares were issued respectively, of which $0 and $1,990,380 were expensed and included in selling, general and administrative expenses for the years ended June 30, 2020 and 2019, 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, 2020
Noncontrolling Interest [Abstract]
NOTE 9 - CONTROLLING AND NON CONTROLLING INTERESTS	NOTE 9 – CONTROLLING AND NONCONTROLLING INTERESTS On February 13, 2013 the Company entered into an agreement with outside investors to acquire a 50.5% controlling interest in a newly formed limited liability company, Health Diagnostics Management LLC (HDM). According to the February 13, 2013 LLC operating agreement of HDM there are two classes of members; Class A members and one Class B member. The Class A members has 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, 2020 and 2019 June 30, 2020 June 30, 2019 Class A Members Class B Member Class A Members Class B Member Opening Members’ Equity $ 2,155,725 $ 36,543,786 $ 3,559,182 $ 31,775,922 Share of Net Income 3,464,528 16,291,633 5,196,543 20,167,864 Distributions (5,565,000 ) (12,985,000 ) (6,600,000 ) (15,400,000 ) Ending Members’ Equity $ 55,253 $ 39,850,419 $ 2,155,725 $ 36,543,786

NOTE 10 - LONG-TERM DEBT, NOTES

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES	12 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES	NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES Long-term debt, notes payable and capital leases consist of the following: 2020 2019 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 $447,448 as of June 30, 2020. $ 273,031 $ 306,056 Note payable received under the Paycheck Protection Program (‘PPP’) which was established as part of the Coronavirus Aid, Relief and Economic Security Act (“Cares Act’) that provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses. The loans and accrued interest are forgivable after 24 weeks as long as the proceeds are used for eligible purposes, including payroll, benefits, rent and utilities and maintains certain payroll levels. The unforgiven portion of the PPP loan is payable over five years at an interest rate of 1%, with a deferral of payments for the first six months. The proceeds from the note payable were received on June 30, 2020. 700,764 — The revolving credit note was extended to August 2021. The Company can borrow up to $10,000,000 and 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 4.0% 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 Company still has the ability to draw down on the line. See Note 19. — — Other (including capital leases for property and equipment). — 7,586 973,795 313,642 Less: Current portion 108,379 40,530 $ 865,416 $ 273,112 The maturities of debt over the next five years and thereafter are as follows: Years Ending June 30, 2021 $ 108,379 2022 178,166 2023 180,972 2024 183,919 2025 187,154 Thereafter 135,205 $ 973,795

NOTE 11 - INCOME TAXES

NOTE 11 - INCOME TAXES	12 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
NOTE 11 - INCOME TAXES	NOTE 11 - INCOME TAXES ASC topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a corporate tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as unrecognized benefits. A liability is recognized (or amount of net operating loss carryforward or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC topic 740. 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 2016 for federal and 2015 for state. The Company has recorded a deferred tax asset of $18,809,757 and a deferred tax liability of $234,106 as of June 30, 2020, primarily relating to its net operating loss carryforwards of approximately $54,883,000 available to offset future taxable income through 2030. The net operating losses begin to expire in 2025 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, 2020, 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, which principally related to research and development tax credits. 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 increased during the year ended June 30, 2020, by approximately $195,000. The valuation allowance decreased by approximately $2,350,000 during the year ended June 30, 2019. On March 27, 2020 Congress enacted the CARES Act (Coronavirus Aid, Relief and Economic Security Act). The Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding prior and future operation losses, temporary changes to prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections to prior tax legislation for tax depreciation of certain qualified improvement property and enhanced recoverability of AMT tax credits. At the present time, the only impact of the CARES Act to the Company is allowing a full reimbursement of $1,342,370 of tax credits relating to the alternative minimum tax credits. The Company received the first half payment in June 2020. The balance of alternative minimum tax credits of $671,185 was received in July 2020. Previously, these credits were to be refunded over a 3 year period. As we continue to monitor tax implications of the CARES Act and other state and federal stimulus tax legislation, we may make adjustments to our estimates and record additional amounts for tax assets and liabilities. Components of the provision (benefit) for income taxes are as follows: Years Ended June 30 Current: 2020 2019 Federal $ (187,255 ) $ — State 513,204 250,000 Subtotal 325,949 250,000 Deferred: Federal deferred taxes 1,953,349 1,685,299 State deferred taxes 165,480 70,221 Subtotal 2,118,829 1,755,520 $ 2,444,778 $ 2,005,520 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, 2020 2019 Taxes at federal statutory rate 21.0 % 21.0 % State and local income taxes (benefit), net of federal benefit 4.0 % 4.0 % Non Controlling interest (6.1 )% (5.8 )% Permanent differences 0.2 % (3.5 )% Change in the valuation allowance 0.3 % (2.6 )% Other (2.1 )% (4.2 )% Effective income tax rate 17.3 % 8.9 % As of June 30, 2020, the Company has net operating loss (“NOL”) carryforwards of approximately $54,883,000 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 credits and investments tax credits carryforwards aggregating $4,440,000. 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, which expire through 2030. As such, the Company has established a valuation reserve for anticipated unused credits of $4,437,000. In addition, for New York State income tax purposes, the Company has tax credit carryforwards aggregating approximately $208,000 which, are accounted for under the flow-through method. The Company is also under audit with New York State for income tax and does not expect any material adjustments. Significant components of the Company's deferred tax assets and liabilities at June 30, 2020 and 2019 are as follows: June 30, 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 3,946,801 $ 3,011,480 Non-deductible accruals 693,833 861,345 Net operating carryforwards 13,720,637 16,448,054 Tax credits 4,647,217 4,601,801 Inventory 69,940 65,081 Property and equipment and depreciation 168,371 192,133 23,246,799 25,179,894 Valuation allowance (4,437,042 ) (4,242,147 ) Total deferred tax assets 18,809,757 20,937,747 Intangibles (234,106 ) (243,267 ) Total deferred tax liabilities (234,106 ) (243,267 ) Net deferred tax asset $ 18,575,651 $ 20,694,480

NOTE 12 - OTHER CURRENT LIABILI

NOTE 12 - OTHER CURRENT LIABILITIES	12 Months Ended
	Jun. 30, 2020
Payables and Accruals [Abstract]
NOTE 12 - OTHER CURRENT LIABILITIES	NOTE 12 - OTHER CURRENT LIABILITIES Included in other current liabilities are the following: June 30, 2020 2019 Accrued salaries, commissions and payroll taxes $ 4,491,941 $ 3,897,833 Litigation accruals 442,802 145,029 Sales tax payable 1,353,200 1,671,488 Legal and other professional fees 112,867 125,567 Accounting fees 120,000 105,000 Self-funded health insurance reserve 86,504 67,825 Accrued interest and penalty 877,787 1,054,134 Other 699,997 510,540 $ 8,185,098 $ 7,577,416

NOTE 13 - COMMITMENTS AND CONTI

NOTE 13 - COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
NOTE 13 - COMMITMENTS AND CONTINGENCIES	NOTE 13 - COMMITMENTS AND CONTINGENCIES Leases The Company rents its operating facilities and certain equipment, pursuant to operating lease agreements expiring at various dates through March 2030. The leases for certain facilities contain escalation clauses relating to increases in real property taxes as well as certain maintenance costs. Rent expense for operating leases approximated $5,136,000 and $4,688,000, for the years ended June 30, 2020 and 2019, 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, 2020 and 2019. 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, 2020. Stipulation Agreements The Company has entered into stipulation agreements with a number of its creditors that in the aggregate total $90,619, which is included in other current liabilities on the Company’s balance sheet as of June 30, 2020. The monthly payments total $15,859. Litigation In September 2020, the Company entered into a settlement agreement with an unrelated third party for a claim made during March 2018 which was scheduled for arbitration. The settlement was for $1.2 million of which $900,000 was paid by the Company’s insurance on September 15, 2020 with the remaining $315,000 to be paid by the Company on September 28, 2020. The $315,000 is included in other current liabilities as of June 30, 2020. The Company is subject to other legal proceedings and claims arising from the ordinary course of its business, including personal injury, customer contract and employment claims besides the claim above. In the opinion of management, and with consultation with legal council, 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. 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 $1,353,000 plus interest and penalties of approximately $832,000. 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 $110,000 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, 2020 and 2019, the Company had approximately $87,000 and $68,000, 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, 2020
Supplemental Cash Flow Elements [Abstract]
NOTE 14 - SUPPLEMENTAL CASH FLOW INFORMATION	NOTE 14 - SUPPLEMENTAL CASH FLOW INFORMATION During the years ended June 30, 2020 and 2019 the Company paid $137,200 and $165,172 for interest, respectively. During the years ended June 30, 2020 and 2019 the Company paid $228,204 and $304,575 for income taxes, respectively. During the years ended June 30, 2020 and 2019, the Company issued 89,981 and 69,971 shares of common stock for costs and expenses totaling $1,990,380 and $1,954,744, respectively. During the year ended June 30, 2020 the Company entered into a capital lease for the purchase of equipment in the amount of $1,350,000.

NOTE 15 - RELATED PARTY TRANSAC

NOTE 15 - RELATED PARTY TRANSACTIONS	12 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
NOTE 15 - RELATED PARTY TRANSACTIONS	NOTE 15 – 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, 2020 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.

NOTE 16 - SEGMENT AND RELATED I

NOTE 16 - SEGMENT AND RELATED INFORMATION	12 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
NOTE 16 - SEGMENT AND RELATED INFORMATION	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 Management of Diagnostic Imaging Fiscal 2020: Equipment Center Totals Net revenues from external customers $ 8,463,103 $ 77,227,359 $ 85,690,462 Intersegment net revenues * $ 875,000 $ — $ 875,000 (Loss) Income from operations $ (6,425,411 ) $ 20,076,327 $ 13,650,916 Depreciation and amortization $ 368,498 $ 3,540,150 $ 3,908,648 Compensatory element of stock issuances $ — $ — $ — Total identifiable assets $ 30,492,757 $ 149,790,753 $ 180,283,510 Capital expenditures $ 2,440,640 $ 4,981,773 $ 7,422,413 Fiscal 2019: Net revenues from external customers $ 10,013,394 $ 77,179,493 $ 87,192,887 Intersegment net revenues * $ 907,084 $ — $ 907,084 (Loss) Income from operations $ (3,419,944 ) $ 25,554,136 $ 22,134,192 Depreciation and amortization $ 370,001 $ 3,466,490 $ 3,836,491 Compensatory element of stock issuances $ 1,990,380 $ — $ 1,990,380 Total identifiable assets $ 25,065,808 $ 108,494,402 $ 133,560,210 Capital expenditures $ 746,768 $ 2,737,081 $ 3,483,849 * 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 20.2% and 5.3% of product sales revenues to third parties for the years ended June 30, 2020 and 2019, 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 2020 2019 Canada — .3 % England — .3 Germany 20.2 % — Puerto Rico — 4.7 20.2 % 5.3 % 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 5.6% and 5.9% of consolidated net service and repair fees for the years ended June 30, 2020 and 2019 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, 2020 2019 Puerto Rico 1.6 % 1.6 % Switzerland 0.3 0.3 Germany 1.5 1.4 England 0.7 0.6 United Arab Emirates — 0.3 Canada 0.3 0.4 Greece 0.2 0.3 Australia 1.0 1.0 5.6 % 5.9 % 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, 2020
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
NOTE 17 - ALLOWANCE FOR DOUBTFUL ACCOUNTS	NOTE 17 – ALLOWANCE FOR DOUBTFUL ACCOUNTS The following represents a summary of allowance for doubtful accounts for the years ended June 30, 2020 and 2019 respectively: Description Balance Additions (1) Deductions Balance Accounts receivable $ 190,244 $ 380,000 $ 55,683 $ 514,561 Management and other fees receivable 9,404,944 3,526,742 (1,868,453 ) 11,063,233 Management and other fees receivable - related medical practices 2,310,731 1,011,324 — 3,322,055 Notes receivable — 777,354 — 777,354 Description Balance June 30, 2018 Additions Deductions Balance June 30, 2019 Accounts receivables $ 190,244 $ — $ — $ 190,244 Management and other fees receivable 10,983,022 (1,578,078 ) — 9,404,944 Management and other fees receivable - related medical practices 1,711,385 599,346 — 2,310,731 Medical receivables 22,727,698 — 22,727,698 — (1) Included in provision for bad debts.

NOTE 18 - QUARTERLY FINANCIAL D

NOTE 18 - QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Jun. 30, 2020
Note 18 - Quarterly Financial Data
NOTE 18 - QUARTERLY FINANCIAL DATA (UNAUDITED)	NOTE 18 - QUARTERLY FINANCIAL DATA (UNAUDITED) (000’s omitted, except per share data) September 30, 2019 December 30, 2019 March 31, 2020 June 30, 2020 Total Total Revenues – Net $ 21,747 $ 21,451 $ 21,686 $ 20,806 $ 85,690 Total Costs and Expenses 16,261 16,430 19,071 20,278 72,040 Net Income 4,506 4,209 1,914 1,076 11,705 Basic Net Income Per Common Share Available to Common Stockholders $ 0.48 $ 0.45 $ 0.18 $ 0.09 $ 1.20 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.47 $ 0.44 $ 0.18 $ 0.09 $ 1.18 September 30, 2018 December 30, 2018 March 31, 2019 June 30, 2019 Total Total Revenues – Net $ 20,705 $ 21,225 $ 22,779 $ 22,484 $ 87,193 Total Costs and Expenses 15,163 15,245 16,171 18,480 65,059 Net Income 4,492 4,864 5,201 2,665 17,222 Basic Net Income Per Common Share Available to Common Stockholders $ 0.49 $ 0.52 $ 0.57 $ 0.20 $ 1.78 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.48 $ 0.51 $ 0.56 $ 1.44 $ 1.74

NOTE 19 - SUBSEQUENT EVENTS

NOTE 19 - SUBSEQUENT EVENTS	12 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
NOTE 19- SUBSEQUENT EVENTS	NOTE 19 – SUBSEQUENT EVENTS The Company evaluates events that have occurred after the balance sheet date, but before the consolidated financial statements are issued. Amendment of Revolving Credit Agreement. During September 2020 the Company amended their revolving credit agreement. The terms increase the borrowing limits from $3,000,000 to $10,000,000 and the agreement was extended to August 2021. The interest rate on borrowings remains at 4% along with certain financial covenants.

NOTE 2 - SUMMARY OF SIGNIFICA_2

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2020
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 $1,870,000 and $1,557,000 for the years ended June 30, 2020 and 2019 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.
Other Intangible Assets	Other Intangible Assets 1) Patents and Copyrights Amortization is calculated on the straight-line basis over 15 years. 2) Non-Competition Agreements The non-competition agreements are being amortized on the straight line basis over the length of the agreement (7 years). 3) 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 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, 2020, the Company has twenty one management agreements of which three are with PC’s owned by Raymond V. Damadian, M.D., Chairman of the Board of FONAR (“the Related medical practices”) and eighteen are with PC’s, which are all located in the state of New York (“the New York PC’s”), owned by two unrelated radiologists. The contractual fees for services rendered to the PCs consists of fixed monthly fees per diagnostic imaging facility ranging from approximately $77,000 to $522,000. All fees are re-negotiable at the anniversary of the agreements and each year thereafter. The Company records a provision for bad debts for estimated uncollectible fees, which is reflected in other operating expenses on the Statement of Operations. All fees are re-negotiable at the anniversary of the agreements and each year thereafter. On July 1, 2018, the Company adopted the new revenue recognition accounting standard issued by the Financial Accounting Standards Board (“FASB”) and codified in the ASC as topic 606 (“ASC 606”). The revenue recognition standard in ASC 606 outlines a single comprehensive model for recognizing revenue as performance obligations, defined in a contract with a customer as goods or services transferred to the customer in exchange for consideration, are satisfied. The standard also requires expanded disclosures regarding the Company’s revenue recognition policies and significant judgments employed in the determination of revenue. The Company applied the modified retrospective approach to all contracts when adopting ASC 606. As a result, at the adoption of ASC 606 the majority of what was previously classified as the provision for bad debts in the statement of operations is now reflected as implicit price concessions (as defined in ASC 606) and therefore included as a reduction to net operating revenues in 2019. For changes in credit issues not assessed at the date of service, the Company will prospectively recognize those amounts in other operating expenses on the statement of operations. For periods prior to the adoption of ASC 606, the provision for bad debts has been presented consistent with the previous revenue recognition standards that required it to be presented separately as a component of net operating revenues. Additionally, upon adoption of ASC 606 the allowance for doubtful accounts of approximately $22.7 million as of July 1, 2018 was reclassified as a component of net patient accounts receivable. Other than these changes in presentation on the condensed consolidated statement of operations and condensed consolidated balance sheet, the adoption of ASC 606 did not have a material impact on the consolidated results of operations for the year ended June 30, 2018 and is not expected to have a material impact on its consolidated results of operations on a prospective basis. Our revenues generally relate to net patient fees received from various payers and patients themselves under contracts in which our performance obligations are to provide diagnostic services to the patients. Revenues are recorded during the period our obligations to provide diagnostic services are satisfied. Our performance obligations for diagnostic services are generally satisfied over a period of less than one day. The contractual relationships with patients, in most cases, also involve a third-party payer (Medicare, Medicaid, managed care health plans and commercial insurance companies, including plans offered through the health insurance exchanges) and the transaction prices for the services provided are dependent upon the terms provided by (Medicare and Medicaid) or negotiated with (managed care health plans and commercial insurance companies) the third-party payers. The payment arrangements with third-party payers for the services we provide to the related patients typically specify payments at amounts less than our standard charges and generally provide for payments based upon predetermined rates per diagnostic services or discounted fee-for-service rates. Management continually reviews the contractual estimation process to consider and incorporate updates to laws and regulations and the frequent changes in managed care contractual terms resulting from contract renegotiations and renewals. The Company’s patient fee revenues, net of contractual allowances and discounts less the provision for bad debts for the years ended June 30, 2020 and 2019 are summarized in the following table. For the Years Ended June 30 2020 2019 Commercial Insurance/ Managed Care $ 4,545,987 $ 5,218,656 Medicare/Medicaid 1,038,288 1,172,543 Workers' Compensation/Personal Injury 16,028,737 16,790,025 Other 882,248 1,026,312 Net Patient Fee Revenue $ 22,495,260 $ 24,207,536
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 $566,000 and $538,000 and for the years ended June 30, 2020 and 2019, 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 $12,056 and $13,695 for the years ended June 30, 2020 and 2019 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, 2020 and 2019. 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, 2020 and 2019, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. June 30, 2020 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 8,240,205 $ 7,735,650 $ 128,500 Denominator: Weighted average shares outstanding 6,443,713 6,443,713 382,513 Basic income per common share $ 1.28 $ 1.20 $ 0.34 Diluted Denominator: Weighted average shares outstanding 6,443,713 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,571,217 382,513 Diluted income per common share $ 1.18 $ 0.34 June 30, 2019 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 15,371,131 $ 14,366,798 $ 242,031 Denominator: Weighted average shares outstanding 6,354,103 6,354,103 382,513 Basic income per common share $ 2.41 $ 2.26 $ 0.63 Diluted Denominator: Weighted average shares outstanding 6,354,103 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,481,607 382,513 Diluted income per common share $ 2.22 $ 0.63
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, cash in banks, investments in certificates of deposit with original maturities of 90 days or less, and money market funds.
Short Term Investments	Short Term Investments Short term investments include certificates of deposit with original maturities of greater than 90 days.
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, 2020, the Company had cash on deposit of approximately $33,444,000 in excess of federally insured limits of $250,000. Related Parties: Net revenues from related parties accounted for approximately 12% and 11% of the consolidated net revenues for the years ended June 30, 2020 and 2019, respectively. Net management fee receivables from the related party medical practices accounted for approximately 13% and 13% of the consolidated accounts receivable for the years ended June 30, 2020 and 2019, 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, 2020 and 2019, 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 Company has established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring and revaluing fair value. These tiers include, Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. 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. Short term investments: The carrying amount approximates fair value because of the short-term maturity of those instruments. Such amounts include Certificates of Deposits with original maturities greater than 90 days. These securities are classified as Level 1. 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 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. The Company adopted the Standard on July 1, 2020 and the impact of adopting this guidance will have no material impact on our Consolidated 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 standard was effective for us beginning July 1, 2019. We have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply the standard to the comparative periods presented in the consolidated financial statements. We have also elected the transition package of thee practical expedients permitted within the standard which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and indirect costs. The adoption of this guidance had a material impact on the Company’s balance sheet by virtue of including the present value of its future operating lease payments as a liability of $33.3 million and related right-to-use lease assets as of July 1, 2019. At the time of adoption of this guidance we had no significant financing leases. The Company accounts for its various operating leases in accordance with Accounting Standards Codification (‘ASC’) 842 – Lease, as updated by ASU 2016-02. At the inception of a lease, the Company recognizes right-of-use lease assets and related lease liabilities measured at present value of future lease payments on its balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease. Our most common initial term varies in length from 2 to 10 years. Including renewal options negotiated with the landlord, we have a total span of 2 to 16 years at the facilities we lease. The Company reviewed its contracts with vendors and customers, determining that its right-to-use lease assets consisted of only office space operating leases. In determining the right-to-use lease assets and liabilities, the Company did recognize lease extension options which the Company feels would be reasonably exercised. Also included in other current assets is a $202,268 receivable from a landlord for tenant improvements. Our incremental borrowing rate (“IBR”) used to discount the stream of operating lease payments is closely related to the interest rates available to the Company. A reconciliation of operating and financing lease payments undiscounted cash flows to lease liabilities recognized as of June 30, 2020 is as follows: Year Ending June 30, Operating Lease Payments Financing Lease Payments 2021 $ 5,078,892 $ 122,172 2022 4,826,934 244,343 2023 4,787,845 244,343 2024 4,501,027 244,343 2025 4,445,344 244,343 Thereafter 19,607,295 407,240 Present value discount (9,772,724 ) (180,914 ) Total lease liability $ 33,474,613 $ 1,325,870 Weighted Average Remaining Lease Term Operating leases - years 10.4 Finance lease - years 6.6 Weighted Average Discount Rate Operating leases 5.5 % Finance lease 3.6 % The components of lease expense were as follows: For year ended June 30, 2020 Operating lease cost $ 5,135,604 Finance lease cost: Depreciation of leased equipment $ — Interest on lease liabilities — Total finance lease cost $ — Supplemental cash flow information related to leases was as follows: For year ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,170,977 Financing cash flows from financing leases — Right-of-use & equipment assets obtained in exchange for lease obligations: Operating leases(1) 34,786,611 Financing leases 1,325,871 (1) Amounts for the year ended June 30, 2020 include the transition adjustment for the adoption of topic 842 of $31,651,110. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of June 30, 2020 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 2020 or 2019, 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 SIGNIFICA_3

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Estimated Useful Life in Years for 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, 2020 and 2019 are summarized in the following table. For the Years Ended June 30 2020 2019 Commercial Insurance/ Managed Care $ 4,545,987 $ 5,218,656 Medicare/Medicaid 1,038,288 1,172,543 Workers' Compensation/Personal Injury 16,028,737 16,790,025 Other 882,248 1,026,312 Net Patient Fee Revenue $ 22,495,260 $ 24,207,536
Earnings Per Share	For the years ended June 30, 2020 and 2019, diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common. June 30, 2020 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 8,240,205 $ 7,735,650 $ 128,500 Denominator: Weighted average shares outstanding 6,443,713 6,443,713 382,513 Basic income per common share $ 1.28 $ 1.20 $ 0.34 Diluted Denominator: Weighted average shares outstanding 6,443,713 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,571,217 382,513 Diluted income per common share $ 1.18 $ 0.34 June 30, 2019 Basic Total Common Stock Class C Common Stock Numerator: Net income available to common stockholders $ 15,371,131 $ 14,366,798 $ 242,031 Denominator: Weighted average shares outstanding 6,354,103 6,354,103 382,513 Basic income per common share $ 2.41 $ 2.26 $ 0.63 Diluted Denominator: Weighted average shares outstanding 6,354,103 382,513 Class C Common Stock 127,504 — Total Denominator for diluted earnings per share 6,481,607 382,513 Diluted income per common share $ 2.22 $ 0.63
Lease, Liability, Maturity	A reconciliation of operating and financing lease payments undiscounted cash flows to lease liabilities recognized as of June 30, 2020 is as follows: Year Ending June 30, Operating Lease Payments Financing Lease Payments 2021 $ 5,078,892 $ 122,172 2022 4,826,934 244,343 2023 4,787,845 244,343 2024 4,501,027 244,343 2025 4,445,344 244,343 Thereafter 19,607,295 407,240 Present value discount (9,772,724 ) (180,914 ) Total lease liability $ 33,474,613 $ 1,325,870 Weighted Average Remaining Lease Term Operating leases - years 10.4 Finance lease - years 6.6 Weighted Average Discount Rate Operating leases 5.5 % Finance lease 3.6 %
Components of lease expense	The components of lease expense were as follows: For year ended June 30, 2020 Operating lease cost $ 5,135,604 Finance lease cost: Depreciation of leased equipment $ — Interest on lease liabilities — Total finance lease cost $ —
Supplemental cash flow information related to leases	Supplemental cash flow information related to leases was as follows: For year ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,170,977 Financing cash flows from financing leases — Right-of-use & equipment assets obtained in exchange for lease obligations: Operating leases(1) 34,786,611 Financing leases 1,325,871

NOTE 3 - ACCOUNTS RECEIVABLE,_2

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Tables)	12 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Receivables - Non Current - net	Future revenue to be recognized over the following four years at June 30, 2020 are as follows: 2022 $ 821,535 2023 744,660 2024 744,660 2025 344,750 Total $ 2,655,605
Total Facilities	The following table sets forth the number of our facilities for the years ended June 30, 2020 and 2019. For the Year Ended June 30, 2020 2019 Total Facilities Owned or Managed (at Beginning of Year) 26 26 Facilities Added by: Acquisition — — Internal development — — Managed Facilities Closed (1 ) — Total Facilities Owned or Managed (at End of Year) 25 26

NOTE 4 - COSTS AND ESTIMATED _2

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables)	12 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Costs and Estimated Earnings on Uncompleted Contracts	Information relating to uncompleted contracts as of June 30, 2020 and 2019 is as follows: As of June 30, 2020 2019 Costs incurred on uncompleted contracts $ 448,437 $ 448,437 Estimated earnings 309,248 1,088,675 757,685 1,537,112 Less: Billings to date 604,852 1,012,002 $ 152,833 $ 525,110

NOTE 5 - INVENTORIES (Tables)

NOTE 5 - INVENTORIES (Tables)	12 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories included in the accompanying consolidated balance sheets consist of: As of June 30, 2020 2019 Purchased parts, components and supplies $ 1,544,036 $ 1,639,777 Work-in-process 104,734 158,389 $ 1,648,770 $ 1,798,166

NOTE 6 - PROPERTY AND EQUIPME_2

NOTE 6 - PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment, at cost, less accumulated depreciation and amortization, at June 30, 2020 and 2019, is comprised of: As of June 30, 2020 2019 Diagnostic equipment $ 28,434,063 $ 26,090,218 Research, development and demonstration equipment 5,901,961 3,605,906 Machinery and equipment 2,069,055 2,069,055 Furniture and fixtures 3,291,666 3,122,102 Leasehold improvements 10,736,825 8,023,292 Building 939,614 939,614 51,373,184 43,850,187 Less: Accumulated depreciation and amortization 30,009,150 26,864,570 $ 21,364,034 $ 16,985,617

NOTE 7 - OTHER INTANGIBLE ASS_2

NOTE 7 - OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intagible Assets - Net	Other intangible assets, net of accumulated amortization, at June 30, 2020 and 2019 are comprised of: As of June 30, 2020 2019 Capitalized software development costs $ 7,004,847 $ 7,004,847 Patents and copyrights 5,081,721 4,964,199 Non-competition agreements 4,100,000 4,100,000 Customer relationships 3,800,000 3,800,000 19,986,568 19,869,046 Less: Accumulated amortization 15,877,439 15,113,371 $ 4,109,129 $ 4,755,675
Schedule Of Other Intangible Assets	The estimated amortization of other intangible assets for the five years ending June 30, 2025 and thereafter is as follows: For the Years Ending June 30, Total Patents and Copyrights Non- Customer Relationships 2021 $ 370,631 $ 180,631 $ — $ 190,000 2022 369,241 179,241 — 190,000 2023 372,700 182,700 — 190,000 2024 372,399 182,399 — 190,000 2025 359,378 169,378 — 190,000 Thereafter 2,264,780 808,113 — 1,456,667 $ 4,109,129 $ 1,702,462 $ — $ 2,406,667
Other Intangible Assets	Information related to the above intangible assets for the years ended June 30, 2020 and 2019 is as follows: As of June 30, 2020 2019 Balance – Beginning of Year $ 4,755,675 $ 5,601,656 Amounts capitalized 117,522 128,393 Software or patents written off — — Amortization (764,068 ) (974,374 ) Balance – End of Year $ 4,109,129 $ 4,755,675

NOTE 9 - CONTROLLING AND NONC_2

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS (Tables)	12 Months Ended
	Jun. 30, 2020
Noncontrolling Interest [Abstract]
Class A And B Members' Equity (HDM Acquisition)	Amount of each class of HDM members’ equity as of June 30, 2020 and 2019 June 30, 2020 June 30, 2019 Class A Members Class B Member Class A Members Class B Member Opening Members’ Equity $ 2,155,725 $ 36,543,786 $ 3,559,182 $ 31,775,922 Share of Net Income 3,464,528 16,291,633 5,196,543 20,167,864 Distributions (5,565,000 ) (12,985,000 ) (6,600,000 ) (15,400,000 ) Ending Members’ Equity $ 55,253 $ 39,850,419 $ 2,155,725 $ 36,543,786

NOTE 10 - LONG-TERM DEBT, NOT_2

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES (Tables)	12 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Long-Term Debt, Notes Payable And Capital Leases	Long-term debt, notes payable and capital leases consist of the following: 2020 2019 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 $447,448 as of June 30, 2020. $ 273,031 $ 306,056 Note payable received under the Paycheck Protection Program (‘PPP’) which was established as part of the Coronavirus Aid, Relief and Economic Security Act (“Cares Act’) that provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses. The loans and accrued interest are forgivable after 24 weeks as long as the proceeds are used for eligible purposes, including payroll, benefits, rent and utilities and maintains certain payroll levels. The unforgiven portion of the PPP loan is payable over five years at an interest rate of 1%, with a deferral of payments for the first six months. The proceeds from the note payable were received on June 30, 2020. 700,764 — The revolving credit note was extended to August 2021. The Company can borrow up to $10,000,000 and 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 4.0% 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 Company still has the ability to draw down on the line. See Note 19. — — Other (including capital leases for property and equipment). — 7,586 973,795 313,642 Less: Current portion 108,379 40,530 $ 865,416 $ 273,112
Maturities Of Long-Term Debt	The maturities of debt over the next five years and thereafter are as follows: Years Ending June 30, 2021 $ 108,379 2022 178,166 2023 180,972 2024 183,919 2025 187,154 Thereafter 135,205 $ 973,795

NOTE 11 - INCOME TAXES (Tables)

NOTE 11 - INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Components Of The Benefit Provision For Income Taxes	Components of the provision (benefit) for income taxes are as follows: Years Ended June 30 Current: 2020 2019 Federal $ (187,255 ) $ — State 513,204 250,000 Subtotal 325,949 250,000 Deferred: Federal deferred taxes 1,953,349 1,685,299 ) State deferred taxes 165,480 70,221 Subtotal 2,118,829 1,755,520 ) $ 2,444,778 $ 2,005,520 )
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, 2020 2019 Taxes at federal statutory rate 21.0 % 21.0 % State and local income taxes (benefit), net of federal benefit 4.0 % 4.0 % Non Controlling interest (6.1 )% (5.8 )% Permanent differences 0.2 % (3.5 )% Change in the valuation allowance 0.3 % (2.6 )% Other (2.1 )% (4.2 )% Effective income tax rate 17.3 % 8.9 %
Components Of Company's Deferred Tax Assets And Liabilities	Significant components of the Company's deferred tax assets and liabilities at June 30, 2020 and 2019 are as follows: June 30, 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 3,946,801 $ 3,011,480 Non-deductible accruals 693,833 861,345 Net operating carryforwards 13,720,637 16,448,054 Tax credits 4,647,217 4,601,801 Inventory 69,940 65,081 Property and equipment and depreciation 168,371 192,133 23,246,799 25,179,894 Valuation allowance (4,437,042 ) (4,242,147 ) Total deferred tax assets 18,809,757 20,937,747 Intangibles (234,106 ) (243,267 ) Total deferred tax liabilities (234,106 ) (243,267 ) Net deferred tax asset $ 18,575,651 $ 20,694,480

NOTE 12 - OTHER CURRENT LIABI_2

NOTE 12 - OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Jun. 30, 2020
Payables and Accruals [Abstract]
Other Current Liabilities	Included in other current liabilities are the following: June 30, 2020 2019 Accrued salaries, commissions and payroll taxes $ 4,491,941 $ 3,897,833 Litigation accruals 442,802 145,029 Sales tax payable 1,353,200 1,671,488 Legal and other professional fees 112,867 125,567 Accounting fees 120,000 105,000 Self-funded health insurance reserve 86,504 67,825 Accrued interest and penalty 877,787 1,054,134 Other 699,997 510,540 $ 8,185,098 $ 7,577,416

NOTE 16 - SEGMENT AND RELATED_2

NOTE 16 - SEGMENT AND RELATED INFORMATION (Tables)	12 Months Ended
	Jun. 30, 2020
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 Management of Diagnostic Imaging Fiscal 2020: Equipment Center Totals Net revenues from external customers $ 8,463,103 $ 77,227,359 $ 85,690,462 Intersegment net revenues * $ 875,000 $ — $ 875,000 (Loss) Income from operations $ (6,425,411 ) $ 20,076,327 $ 13,650,916 Depreciation and amortization $ 368,498 $ 3,540,150 $ 3,908,648 Compensatory element of stock issuances $ — $ — $ — Total identifiable assets $ 30,492,757 $ 149,790,753 $ 180,283,510 Capital expenditures $ 2,440,640 $ 4,981,773 $ 7,422,413 Fiscal 2019: Net revenues from external customers $ 10,013,394 $ 77,179,493 $ 87,192,887 Intersegment net revenues * $ 907,084 $ — $ 907,084 (Loss) Income from operations $ (3,419,944 ) $ 25,554,136 $ 22,134,192 Depreciation and amortization $ 370,001 $ 3,466,490 $ 3,836,491 Compensatory element of stock issuances $ 1,990,380 $ — $ 1,990,380 Total identifiable assets $ 25,065,808 $ 108,494,402 $ 133,560,210 Capital expenditures $ 746,768 $ 2,737,081 $ 3,483,849 * Amounts eliminated in consolidation
Export Product Sales	The foreign product sales, as a percentage of product sales to unrelated parties, were made to customers in the following countries: For the Years Ended June 30 2020 2019 Canada — .3 % England — .3 Germany 20.2 % — Puerto Rico — 4.7 20.2 % 5.3 %
Foreign Service and Repair Fees	Foreign service and repair fees, as a percentage of total service and repair fees, were provided principally to the following countries: For the Years Ended June 30, 2020 2019 Puerto Rico 1.6 % 1.6 % Switzerland 0.3 0.3 Germany 1.5 1.4 England 0.7 0.6 United Arab Emirates — 0.3 Canada 0.3 0.4 Greece 0.2 0.3 Australia 1.0 1.0 5.6 % 5.9 %

NOTE 17 - ALLOWANCE FOR DOUBT_2

NOTE 17 - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables)	12 Months Ended
	Jun. 30, 2020
SEC Schedule, 12-09, 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, 2020 and 2019 respectively: Description Balance Additions (1) Deductions Balance Accounts receivable $ 190,244 $ 380,000 $ 55,683 $ 514,561 Management and other fees receivable 9,404,944 3,526,742 (1,868,453 ) 11,063,233 Management and other fees receivable - related medical practices 2,310,731 1,011,324 — 3,322,055 Notes receivable — 777,354 — 777,354 Description Balance June 30, 2018 Additions Deductions Balance June 30, 2019 Accounts receivables $ 190,244 $ — $ — $ 190,244 Management and other fees receivable 10,983,022 (1,578,078 ) — 9,404,944 Management and other fees receivable - related medical practices 1,711,385 599,346 — 2,310,731 Medical receivables 22,727,698 — 22,727,698 — (1) Included in provision for bad debts.

NOTE 18 - QUARTERLY FINANCIAL_2

NOTE 18 - QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Jun. 30, 2020
Supplemental Cash Flow Elements [Abstract]
Quarterly Financial Data	September 30, 2019 December 30, 2019 March 31, 2020 June 30, 2020 Total Total Revenues – Net $ 21,747 $ 21,451 $ 21,686 $ 20,806 $ 85,690 Total Costs and Expenses 16,261 16,430 19,071 20,278 72,040 Net Income 4,506 4,209 1,914 1,076 11,705 Basic Net Income Per Common Share Available to Common Stockholders $ 0.48 $ 0.45 $ 0.18 $ 0.09 $ 1.20 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.47 $ 0.44 $ 0.18 $ 0.09 $ 1.18 September 30, 2018 December 30, 2018 March 31, 2019 June 30, 2019 Total Total Revenues – Net $ 20,705 $ 21,225 $ 22,779 $ 22,484 $ 87,193 Total Costs and Expenses 15,163 15,245 16,171 18,480 65,059 Net Income 4,492 4,864 5,201 2,665 17,222 Basic Net Income Per Common Share Available to Common Stockholders $ 0.49 $ 0.52 $ 0.57 $ 0.20 $ 1.78 Diluted Net Income Per Common Share Available to Common Stockholders $ 0.48 $ 0.51 $ 0.56 $ 1.44 $ 1.74

NOTE 1 - DESCRIPTION OF BUSIN_2

NOTE 1 - DESCRIPTION OF BUSINESS, LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - Health Diagnostics Management LLC (HDM)	Jul. 01, 2015
Imperial contribution percentage	24.20%
Ownership percentage	45.80%
Investors [Member]
Ownership percentage	30.00%

NOTE 2 - SUMMARY OF SIGNIFICA_4

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful Life in Years - (Details)	12 Months Ended
	Jun. 30, 2020
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 SIGNIFICA_5

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Patient Fee Revenue Recognition - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Net Patient Fee Revenue	$ 22,495,260	$ 24,207,536
Commercial Insurance / Managed Care
Net Patient Fee Revenue	4,545,987	5,218,656
Medicare/Medicaid
Net Patient Fee Revenue	1,038,288	1,172,543
Workers Compensation/Personal Injury
Net Patient Fee Revenue	16,028,737	16,790,025
Other Patient Fee Revenues
Net Patient Fee Revenue	$ 882,248	$ 1,026,312

NOTE 2 - SUMMARY OF SIGNIFICA_6

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Basic Numerator: Net Income Available to Common Stockholders	$ 8,240,205	$ 15,317,131
Basic Denominator: Weighted Average Shares Outstanding	6,443,713	6,354,103
Basic Income Per Common Share	$ 1.28	$ 2.41
Common Shares
Basic Numerator: Net Income Available to Common Stockholders	$ 7,735,650	$ 14,366,798
Basic Denominator: Weighted Average Shares Outstanding	6,443,713	6,354,103
Basic Income Per Common Share	$ 1.2	$ 2.26
Shares included upon conversion of Class C Common to calculate a diluted EPS	127,504	127,504
Total Denominator for Diluted Earnings Per Share	6,571,217	6,481,607
Diluted Income per Common Share	$ 1.18	$ 2.22
Class C Common Stock
Basic Numerator: Net Income Available to Common Stockholders	$ 128,500	$ 242,031
Basic Denominator: Weighted Average Shares Outstanding	382,513	382,513
Basic Income Per Common Share	$ 0.34	$ 0.63
Shares included upon conversion of Class C Common to calculate a diluted EPS
Total Denominator for Diluted Earnings Per Share	382,513	382,513
Diluted Income per Common Share	$ 0.34	$ 0.63

NOTE 2 - SUMMARY OF SIGNIFICA_7

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements - Lease Payments (Details)	Jun. 30, 2020USD ($)
Operating Lease
2021	$ 5,078,892
2022	4,826,934
2023	4,787,845
2024	4,501,027
2025	4,445,344
Thereafter	19,607,295
Present Value discount	(9,772,724)
Total lease liability	33,474,613
Financing Lease
2021	122,172
2022	244,343
2023	244,343
2024	244,343
2025	244,343
Thereafter	407,240
Present Value discount, Financing Lease	(180,914)
Total lease liability	$ 1,325,870
Weighted Average Remaining Lease Term Operating leases - Years	10 years 4 months 24 days
Weighted Average Remaining Lease Term Finance lease - Years	6 years 7 months 6 days
Weighted Average Discount Rate Operating leases	5.50%
Weighted Average Discount Rate Finance lease	3.60%

NOTE 2 - SUMMARY OF SIGNIFICA_8

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements - Components of lease expense (Details)	12 Months Ended
	Jun. 30, 2020USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease cost	$ 5,135,604
Finance lease cost:
Depreciation of leased equipment
Interest on lease liabilities
Total finance lease cost

NOTE 2 - SUMMARY OF SIGNIFICA_9

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements - Related to leases (Details)	12 Months Ended
	Jun. 30, 2020USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating cash flows from operating leases	$ 4,170,977
Right-of-use & equipment assets obtained in exchange for lease obiligations: Operating leases	34,786,611
Right-of-use & equipment assets obtained in exchange for lease obiligations: Financing leases	$ 1,325,871

NOTE 2 - SUMMARY OF SIGNIFIC_10

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Jun. 30, 2020USD ($)shares	Jun. 30, 2019USD ($)shares
Maintenance and Repair Expenses for Property and Equipment	$ 1,870,000	$ 1,557,000
Management Agreements with Company - Total Medical Practices	21
Management Agreements with Company - Related Medical Practices	3
Management Agreements with Company - Located in New York State	18
Advertising Costs	$ 566,000	538,000
Shipping and Handling Expense	$ 12,056	$ 13,695
Number of shares added to diluted EPS upon conversion of Class C Common | shares	127,504	127,504
Cash on Deposit in Bank in excess of federally insured limits	$ 33,444,000
Federally insured limit (FDIC)	250,000
Allowance for doubtful accounts	22,700,000
Receivable from landlord for tenant improvements	202,268
Operating lease payments	$ 33,300,000
Net revenues from related parties [Member]
Concentration Risk, Percentage	12.00%	11.00%
Net management fee receivables from the related party medical practices [Member]
Concentration Risk, Percentage	13.00%	13.00%
Patents and Copyrights
Intangible assets useful life	15 years
Non-competition
Intangible assets useful life	7 years
Customer Relationships
Intangible assets useful life	20 years
Diagnostic Imaging Facility
Contractual fees per month for services rendered minimum	$ 77,000
Contractual fees per month for services rendered maximum	$ 522,000

NOTE 3 - ACCOUNTS RECEIVABLE,_3

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE & MANAGEMENT & OTHER FEES RECEIVABLE - Long Term Accounts Receivable (Details)	Jun. 30, 2020USD ($)
Receivables, Long-term Contracts or Programs [Abstract]
2022	$ 821,535
2023	744,660
2024	744,660
2025	344,750
Total	$ 2,655,605

NOTE 3 - ACCOUNTS RECEIVABLE,_4

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE-Total Facilities (Details) - Integer	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Note 3 - Accounts Receivable Medical Receivable And Management And Other Fees Receivable-total Facilities
Total Facilities Owned or Managed (at Beginning of Year)	26	26
Managed Facilities Added Acquisition
Managed Facilities Added By Internal development
Managed Facilities Closed During year	(1)
Total Facilities Owned or Managed (at End of Year)	25	26

NOTE 3 - ACCOUNTS RECEIVABLE,_5

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - (Details Narrative)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
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	66.00%	67.00%
Percentage of consolidated net revenue from management fees charged to related party medical practices	12.00%	11.00%

NOTE 4 - COSTS AND ESTIMATED _3

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS - Costs, Earnings, Billings, Uncompleted Contracts - (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Notes to Financial Statements
Costs incurred on uncompleted contracts	$ 448,437	$ 448,437
Estimated earnings	309,248	1,088,675
Costs and estimated earnings on uncompleted contracts	757,685	1,537,112
Less: Billings to date	604,852	1,012,002
Costs and estimated earnings in excess of billings on uncompleted contracts	$ 152,833	$ 525,110

NOTE 5 - INVENTORIES - Inventor

NOTE 5 - INVENTORIES - Inventories (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Inventory Disclosure [Abstract]
Purchased parts, components and supplies	$ 1,544,036	$ 1,639,777
Work-in-process	104,734	158,389
Inventories	$ 1,648,770	$ 1,798,166

NOTE 6 - PROPERTY AND EQUIPME_3

NOTE 6 - PROPERTY AND EQUIPMENT - Property and Equipment (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Property and Equipment Before Accumulated depreciation and amortization	$ 51,373,184	$ 43,850,187
Less: Accumulated depreciation and amortization of property and equipment	30,009,150	26,864,570
Property and Equipment AfterAccumulated depreciation and amortization	21,364,034	16,985,617
Diagnostic Equipment
Property and Equipment Before Accumulated depreciation and amortization	28,434,063	26,090,218
Research, development and demonstration equipment
Property and Equipment Before Accumulated depreciation and amortization	5,901,961	3,605,906
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	3,291,666	3,122,102
Leasehold Improvements
Property and Equipment Before Accumulated depreciation and amortization	10,736,825	8,023,292
Building
Property and Equipment Before Accumulated depreciation and amortization	$ 939,614	$ 939,614

NOTE 6 - PROPERTY AND EQUIPME_4

NOTE 6 - PROPERTY AND EQUIPMENT- (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment [Member]
Depreciation and amortization of property and equipment	$ 3,144,580	$ 2,862,117

NOTE 7 - OTHER INTANGIBLE ASS_3

NOTE 7 - OTHER INTANGIBLE ASSETS - Other Intagible Assets Net of Amoritization (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Other intangible assets - gross	$ 19,986,568	$ 19,869,046
Less: Accumulated amortization	15,877,439	15,113,371
Other intangible assets - net	4,109,129	4,755,675	$ 5,601,656
Capitalized software development costs [Member]
Other intangible assets - gross	7,004,847	7,004,847
Patents and Copyrights
Other intangible assets - gross	5,081,721	4,964,199
Non-competition
Other intangible assets - gross	4,100,000	4,100,000
Customer Relationships
Other intangible assets - gross	$ 3,800,000	$ 3,800,000

NOTE 7 - OTHER INTANGIBLE ASS_4

NOTE 7 - OTHER INTANGIBLE ASSETS - Forward Looking Schedule of Other Intangible Assets - (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
2021	$ 370,631
2022	369,241
2023	372,700
2024	372,399
2025	359,378
Thereafter	2,264,780
Other intangible assets - net	4,109,129	$ 4,755,675
Patents and Copyrights
2021	180,631
2022	179,241
2023	182,700
2024	182,399
2025	169,378
Thereafter	808,113
Other intangible assets - net	1,702,462
Non-competition
2021
2022
2023
2024
2025
Thereafter
Other intangible assets - net
Customer Relationships
2021	190,000
2022	190,000
2023	190,000
2024	190,000
2025	190,000
Thereafter	1,456,667
Other intangible assets - net	$ 2,406,667

NOTE 7 - OTHER INTANGIBLE ASS_5

NOTE 7 - OTHER INTANGIBLE ASSETS - Schedule Of Intangle Assets - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Balance - Beginning of Year	$ 4,755,675	$ 5,601,656
Amounts capitalized	117,522	128,393
Software or patents written off
Amortization	(764,068)	(974,374)
Balance - End of Year	$ 4,109,129	$ 4,755,675

NOTE 7 - OTHER INTANGIBLE ASS_6

NOTE 7 - OTHER INTANGIBLE ASSETS - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Weighted average amortization period (years)	12 years
Patents and Copyrights
Amortization other intangible assets	$ 183,592	$ 198,660
Non-competition
Amortization other intangible assets	390,476	585,714
Customer Relationships
Amortization other intangible assets	$ 190,000	$ 190,000

NOTE 8 - CAPITAL STOCK - (Detai

NOTE 8 - CAPITAL STOCK - (Details Narrative) - shares	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Aug. 10, 2010	Apr. 23, 2010
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.
Common Stock, Outstanding	6,447,463	6,357,482
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.
Common Stock, Outstanding	146	146
Shares Outstanding	There were 146 of such shares outstanding at June 30, 2020, 2019
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.
Common Stock, Outstanding	382,513	382,513
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. 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.
2010 Stock Bonus Plan [Member]
Shares reserved				2,000,000
Shares Registered			2,000,000
Shares Available for Grant	556,924
Shares issued	89,981	69,971

NOTE 9 - CONTROLLING AND NONC_3

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - HDM Members Equity (Details) - Health Diagnostics Management LLC (HDM) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Class A Members
Opening Members Equity	$ 2,155,725	$ 3,559,182
Share of Net Income	3,464,528	5,196,543
Distributions	(5,565,000)	(6,600,000)
Ending Members Equity	55,253	2,155,725
Class B Members
Opening Members Equity	36,543,786	31,775,922
Share of Net Income	16,291,633	20,167,864
Distributions	(12,985,000)	(15,400,000)
Ending Members Equity	$ 39,850,419	$ 36,543,786

NOTE 9 - CONTROLLING AND NONC_4

NOTE 9 - CONTROLLING AND NONCONTROLLING INTERESTS - (Details Narrative)	1 Months Ended
	Feb. 13, 2013USD ($)	Jan. 08, 2015USD ($)	Mar. 05, 2013USD ($)Integer
Health Diagnostics Management LLC (HDM)
Purchase of Stand-Up MRI Centers | Integer			12
Purchase of Other MRI Centers | Integer			2
Total purchase price			$ 35,900,000
Consideration to Outside Investors			1,500,000
Consideration For Non-Competition and Consulting Agreements			$ 4,100,000
Health Diagnostics Management LLC (HDM)
Contribution from Affiliates	$ 20,200,000
Health Diagnostics Management LLC (HDM) | Outside Investors
Contribution from Affiliates	$ 19,800,000
Class B Member | Health Diagnostics Management LLC (HDM)
Ownership Percentage	50.50%
Ownership Percentage acquired	50.50%
Class A Member | Health Diagnostics Management LLC (HDM)
Ownership Percentage	49.50%	60.40%
Acquisition of Less than 100 Percent, Noncontrolling Interest		$ 4,971,094

NOTE 10 - LONG-TERM DEBT, NOT_3

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND CAPITAL LEASES Long-Term Debt, Notes Payable And Capital Leases - (Details)	12 Months Ended
	Jun. 30, 2020USD ($)Integer	Jun. 30, 2019USD ($)
Long Term Debt, Notes Payable and Capital Leases	$ 973,795	$ 313,642
Current portion of Long Term Debt, Notes Payable and Capital Leases	108,379	40,530
Long Term Debt, Notes Payable and Capital Leases less Current Portion	865,416	273,112
Book value of building	447,448
Long Term Note 1
Long Term Debt, Notes Payable and Capital Leases	$ 273,031	306,056
Interest rate	7.00%
Number of installment | Integer	240
Frequency of Periodic Payment	monthly
Periodic Payment	$ 4,472
Maturity Date	Oct. 31, 2026
Long Term Note 2
Long Term Debt, Notes Payable and Capital Leases	$ 700,764
Interest rate	1.00%
Term	5 years
Long Term Note 3
Long Term Debt, Notes Payable and Capital Leases
Interest rate	4.00%
Revolving credit limit	$ 3,000,000
Long Term Note 4
Long Term Debt, Notes Payable and Capital Leases		$ 7,586

NOTE 10 - LONG-TERM DEBT, NOT_4

NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE & CAPITAL LEASES - Maturities Of Long-Term Debt Over 5 Years - (Details)	Jun. 30, 2019USD ($)
Debt Disclosure [Abstract]
2021	$ 108,379
2022	178,166
2023	180,972
2024	183,919
2025	187,154
Thereafter	135,205
Long-Term Debt Over Five Years and Thereafter	$ 973,795

NOTE 11 - INCOME TAXES - Compon

NOTE 11 - INCOME TAXES - Components Of Current Benefit For Income Taxes - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Current: Federal	$ (187,255)
Current: State	513,204	250,000
Subtotal Current Federal and State	325,949	250,000
Federal Deferred taxes	1,953,349	1,685,299
State Deferred taxes	165,480	70,221
Subtotal Deferred Federal and State Taxes	2,118,829	1,755,520
Provision (Benefit) for Income Taxes - Net	$ 2,444,778	$ 2,005,520

NOTE 11 - INCOME TAXES - Reconc

NOTE 11 - INCOME TAXES - Reconciliation of Federal Statutory Income Tax Rate (Details)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Note 11 - Income Taxes - Reconciliation Of Federal Statutory Income Tax Rate
Taxes at federal statutory rate	21.00%	21.00%
State and local income taxes (benefit), net of federal benefit	4.00%	4.00%
Non controlling interest	(6.10%)	(5.80%)
Permanent differences (taxes)	0.20%	(3.50%)
Decrease in the valuation allowance	0.30%	(2.60%)
Other	(2.10%)	(4.20%)
Effective income tax rate	17.30%	8.90%

NOTE 11 - INCOME TAXES - Signif

NOTE 11 - INCOME TAXES - Significant Components Of Company's Deferred Tax Assets And Liabilities - (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Deferred Tax Assets:
Allowance for doubtful accounts	$ 3,946,801	$ 3,011,480
Non Deductible Accruals	693,833	861,345
Net operating carryforwards	13,720,637	16,448,054
Tax credits	4,647,217	4,601,801
Inventory	69,940	65,081
Property and equipment and depreciation	168,371	192,133
Deferred Tax Assets - gross	23,246,799	25,179,894
Valuation allowance	(4,437,042)	(4,242,147)
Total Deferred tax assets	18,809,757	20,937,747
Deferred tax liabilities:
Intangibles	(234,106)	(243,267)
Total deferred tax liabilities	(234,106)	(243,267)
Net Deferred Tax Asset	$ 18,575,651	$ 20,694,480

NOTE 11 - INCOME TAXES - (Detai

NOTE 11 - INCOME TAXES - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Note 11 - Income Taxes -
Total Deferred tax assets	$ 18,809,757	$ 20,937,747
Deferred Tax Liability	234,106
Net Operating Loss (NOL) Carryforwards Available to Offset Future Taxable Income	54,883,000
Change in valuation allowance	$ 195,000	$ 2,350,000
Reimbursement of alternative minimum tax credits description	Company is allowing a full reimbursement of $1,342,370 of tax credits relating to the alternative minimum tax credits. The Company received the first half payment in June 2020. The balance of alternative minimum tax credits of $671,185 was received in July 2020. Previously, these credits were to be refunded over a 3 year period.
Research and Development Tax Credit Carryforwards	$ 4,440,000
Valuation reserve for anticipated unused tax credit caryforwards	4,437,000
NY State Tax Credit Carryforwards	$ 208,000

NOTE 12 - OTHER CURRENT LIABI_3

NOTE 12 - OTHER CURRENT LIABILITIES - Other Current Liabilities - (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Payables and Accruals [Abstract]
Accrued salaries, commissions and payroll taxes	$ 4,491,941	$ 3,897,833
Litigation accruals	442,802	145,029
Sales tax payable	1,353,200	1,671,488
Legal and other professional fees	112,867	125,567
Accounting fees	120,000	105,000
Self-funded health insurance reserve	86,504	67,825
Accrued Interest and penalty	877,787	1,054,134
Other	699,997	510,540
Other current liabilities	$ 8,185,098	$ 7,577,416

NOTE 13 - COMMITMENTS AND CON_2

NOTE 13 - COMMITMENTS AND CONTINGENCIES - (Details Narrative) - USD ($)	12 Months Ended		120 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2028
Rent Expense	$ 5,136,000	$ 4,688,000
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
Stipulation agreement with creditors	90,619
Average Monthly Payment for Stipulation Agreements	15,859
Recorded sales tax obligations - principal	1,353,000
Recorded sales tax obligations - interest and penalties	832,000
Reserve for Self-Funded Health Insurance Program	87,000	$ 68,000
Stop-Loss Umbrella Policy with 3rd Pary Insurer to Limit Maximum Potential Liability for individual Claims	$ 110,000
Litigation settelement description	In September 2020, the Company entered into a settlement agreement with an unrelated third party for a claim made during March 2018 which was scheduled for arbitration. The settlement was for $1.2 million of which $900,000 is to be paid by the Company’s insurance with the remaining $315,000 to be paid by the Company. The $315,000 is included in other current liabilities as of June 30, 2020.
2000 Employee Stock Purchase Plan
2000 Employee Stock Purchase Plan (ESPP)	The stockholders of the Company approved the 2000 Employee Stock Purchase Plan ("ESPP") at the Company's annual stockholders' meeting in April 2000. The ESPP provides for eligible employees to acquire common stock of the Company at a discount, not to exceed 15%. This plan has not been put into effect as of June 30, 2020.

NOTE 14 - SUPPLEMENTAL CASH F_2

NOTE 14 - SUPPLEMENTAL CASH FLOW INFORMATION - (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Note 14 - Supplemental Cash Flow Information -
Interest paid	$ 137,200	$ 165,172
Income taxes paid	228,204	304,575
Common stock for costs and expenses, Value	$ 1,990,380	$ 1,954,744
Common stock for costs and expenses, Shares	89,981	69,971
Capital lease for purchase of equipment	$ 1,350,000

NOTE 15 - RELATED PARTY TRANS_2

NOTE 15 - RELATED PARTY TRANSACTIONS - (Details Narrative)	12 Months Ended
	Jun. 30, 2020
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. The agreement was renewed on June 1, 2020 for another year.
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.

NOTE 16 - SEGMENT AND RELATED_3

NOTE 16 - SEGMENT AND RELATED INFORMATION - Sumarized Segments - (Details) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Total Revenues - Net	$ 85,690,462	$ 87,192,887
Intersegment net revenues	875,000	907,084
(Loss) Income from operations	13,650,916	22,134,192
Depreciation and amortization	3,908,648	3,836,491
Compensatory element of stock issuances		1,990,380
Total identifiable assets	180,283,510	133,560,210
Capital expenditures	7,422,413	3,483,849
Manufacturing And Servicing Of Medical Equipment
Total Revenues - Net	8,463,103	10,013,394
Intersegment net revenues	875,000	907,084
(Loss) Income from operations	(6,425,411)	(3,419,944)
Depreciation and amortization	368,498	370,001
Compensatory element of stock issuances		1,990,380
Total identifiable assets	30,492,757	25,065,808
Capital expenditures	2,440,640	746,768
Management of Diagnostic Imaging Centers
Total Revenues - Net	77,227,359	77,179,493
Intersegment net revenues
(Loss) Income from operations	20,076,327	25,554,136
Depreciation and amortization	3,540,150	3,466,490
Compensatory element of stock issuances
Total identifiable assets	149,790,753	108,494,402
Capital expenditures	$ 4,981,773	$ 2,737,081

NOTE 16 - SEGMENT AND RELATED_4

NOTE 16 - SEGMENT AND RELATED INFORMATION - Foreign Product Sales - (Details)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Foreign Product Sales	20.20%	5.30%
Canada
Foreign Product Sales	0.00%	0.30%
England
Foreign Product Sales	0.00%	0.30%
Germany
Foreign Product Sales	20.20%	0.00%
Puerto Rico
Foreign Product Sales	0.00%	4.70%

NOTE 16 - SEGMENT AND RELATED_5

NOTE 16 - SEGMENT AND RELATED INFORMATION - Foreign Service and Repair Fees - (Details)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Foreign Service and Repair fees	5.60%	5.90%
Puerto Rico
Foreign Service and Repair fees	1.60%	1.60%
Switzerland
Foreign Service and Repair fees	0.30%	0.30%
Germany
Foreign Service and Repair fees	1.50%	1.40%
England
Foreign Service and Repair fees	0.70%	0.60%
United Arab Emerites
Foreign Service and Repair fees	0.00%	0.30%
Canada
Foreign Service and Repair fees	0.30%	0.40%
Greece
Foreign Service and Repair fees	0.20%	0.30%
Australia
Foreign Service and Repair fees	1.00%	1.00%

NOTE 16 - SEGMENT AND RELATED_6

NOTE 16 - SEGMENT AND RELATED INFORMATION - (Details Narrative)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Note 16 - Segment And Related Information -
Export Sales of medical equipment percentage	20.20%	5.30%
Foreign Revenues of service and repair of medical equipment percentage	5.60%	5.90%

NOTE 17 - ALLOWANCE FOR DOUBT_3

NOTE 17 - ALLOWANCE FOR DOUBTFUL ACCOUNTS - Allowance For Doubtful Accounts (Details) (USD $) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Ending Balance	$ 22,700,000
Accounts Receivable [Member]
Beginning Balance	190,244	$ 190,244
Additions (Included in provision for bad debts)	380,000
Deductions	55,683
Ending Balance	514,561	190,244
Management and other fees receivable [Member]
Beginning Balance	9,404,944	10,983,022
Additions (Included in provision for bad debts)	3,526,742	(1,578,078)
Deductions	(1,868,453)
Ending Balance	11,063,233	9,404,944
Management fee receivable from related medical practices [Member]
Beginning Balance	2,310,731	1,711,385
Additions (Included in provision for bad debts)	1,011,324	599,346
Deductions
Ending Balance	3,322,055	2,310,731
Notes Receivable [Member]
Beginning Balance
Additions (Included in provision for bad debts)	777,354
Deductions
Ending Balance	777,354
Medical receivables
Beginning Balance		22,727,698
Additions (Included in provision for bad debts)
Deductions		22,727,698
Ending Balance

NOTE 18 - QUARTERLY FINANCIAL_3

NOTE 18 - QUARTERLY FINANCIAL DATA (UNAUDITED) - Unaudited Quarterly Financial Tables- (Details) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2020	Jun. 30, 2019
Total Revenues - Net									$ 85,690,462	$ 87,192,887
Total Costs and Expenses									72,039,546	65,058,695
Net Income									$ 11,704,733	$ 20,513,674
Basic Net Income Per Common Share Available to Common Stockholders									$ 1.28	$ 2.41
Quarterly Financial Data [Member]
Total Revenues - Net	$ 20,806,000	$ 21,686,000	$ 21,451,000	$ 21,747,000	$ 22,484,000	$ 22,779,000	$ 21,225,000	$ 20,705,000	$ 85,690,000	$ 87,193,000
Total Costs and Expenses	20,278,000	19,071,000	16,430,000	16,261,000	18,480,000	16,171,000	15,245,000	15,163,000	72,040,000	65,059,000
Net Income	$ 1,076,000	$ 1,914,000	$ 4,209,000	$ 4,506,000	$ 2,665,000	$ 5,201,000	$ 4,864,000	$ 4,492,000	$ 11,705,000	$ 17,222,000
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.09	$ 0.18	$ 0.45	$ 0.48	$ 0.2	$ 0.57	$ 0.52	$ 0.49	$ 1.2	$ 1.78
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.09	$ 0.18	$ 0.44	$ 0.47	$ 1.44	$ 0.56	$ 0.51	$ 0.48	$ 1.18	$ 1.74

NOTE 19 - SUBSEQUENT EVENTS (De

NOTE 19 - SUBSEQUENT EVENTS (Details Narrative)	1 Months Ended
	Sep. 30, 2020
Subsequent Event [Member]
Revolving credit description	The terms increase the borrowing limits from $3,000,000 to $10,000,000 and the agreement was extended to August 2021.