FONAR (FONR) 10-Q 16 Feb 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2020	Feb. 05, 2021
Entity Registrant Name	FONAR CORP
Entity Central Index Key	0000355019
Document Type	10-Q
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity File Number	0-10248
Entity Incorporation State Country Code	DE
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
Trading Symbol	FONR
Security Exchange Name	NASDAQ
Security 12B Title	Common Stock
Entity Shell Company	false
Common Stock
Entity Common Stock, Shares Outstanding		6,554,210
Class B Common Stock
Entity Common Stock, Shares Outstanding		146
Class C Common Stock
Entity Common Stock, Shares Outstanding		382,513
Class A Common Stock
Entity Common Stock, Shares Outstanding		313,438

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Current Assets:
Cash and cash equivalents	$ 40,579	$ 36,802
Short term investments	32	32
Accounts receivable - net	4,171	4,313
Account receivable - related parties	72	6
Medical receivables -net	16,373	16,172
Management and other fees receivable -net	29,808	27,438
Management and other fees receivable - related medical practices -net	7,262	6,896
Inventories	1,844	1,649
Costs and estimated earnings in excess of billings on uncompleted contracts	153	153
Income taxes receivable		671
Prepaid expenses and other current assets	1,302	1,758
Total Current Assets	101,596	95,890
Accounts receivable	2,594	2,730
Deferred income tax asset	16,848	18,810
Property and equipment - net	21,683	21,364
Right-of-use Asset - operating lease	29,570	31,392
Right-of-use-asset - financing lease	1,226	1,326
Goodwill	3,985	3,985
Other intangible assets - net	4,014	4,109
Other assets	632	653
Total Assets	182,148	180,259
Current Liabilities:
Current portion of long-term debt and capital leases	222	108
Accounts payable	2,198	1,965
Other current liabilities	5,584	8,185
Unearned revenue on service contracts	4,029	4,105
Unearned revenue on service contracts - related parties	55
Operating lease liability - current portion	3,403	3,370
Financing lease liability - current portion	200	75
Customer deposits	1,232	855
Total Current Liabilities	16,923	18,663
Long-Term Liabilities:
Unearned revenue on service contracts	2,528	2,656
Deferred Income Tax Liability	234	234
Due to related party medical practices	93	93
Operating lease liability - net of current portion	28,415	30,105
Financing lease liability - net of current portion	1,151	1,251
Long-term debt and capital leases, less current portion	780	865
Other liabilities	148	150
Total Long-Term Liabilities	33,349	35,354
Total Liabilities	50,272	54,017
STOCKHOLDERS' EQUITY:
Paid-in capital in excess of par value	185,101	183,076
Accumulated deficit	(50,596)	(56,215)
Treasury stock, at cost	(675)	(675)
Total Fonar Corporation Stockholder Equity	133,831	126,187
Noncontrolling interests	(1,955)	55
Total Stockholders' Equity	131,876	126,242
Total Liabilities and Stockholders' Equity	182,148	180,259
Class A Non-Voting Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred stock value
Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred stock value
Common Stock
STOCKHOLDERS' EQUITY:
Common stock value	1	1
Class B Common Stock
STOCKHOLDERS' EQUITY:
Common stock value
Class C Common Stock
STOCKHOLDERS' EQUITY:
Common stock value

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Dec. 31, 2020	Jun. 30, 2020
Class A Non-Voting Preferred Stock
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Authorized	453,000	453,000
Preferred Stock, Issued	313,000	313,000
Preferred Stock, Outstanding	313,000	313,000
Preferred Stock
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Authorized	567,000	567,000
Preferred Stock, Issued
Preferred Stock, Outstanding
Common Stock
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	8,500,000	8,500,000
Common Stock, Issued	6,566,000	6,459,000
Common Stock, Outstanding	6,554,000	6,447,000
Class B Common Stock
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	227,000	227,000
Common Stock, Issued	146	146
Common Stock, Outstanding	146	146
Class C Common Stock
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Authorized	567,000	567,000
Common Stock, Issued	383,000	383,000
Common Stock, Outstanding	383,000	383,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
REVENUES
Patient fee revenue, net of contractual allowances and discounts	$ 5,238	$ 5,996	$ 10,330	$ 12,041
Product sales - net	3	3	31	195
Service and repair fees - net	1,862	2,038	3,788	4,102
Service and repair fees - related parties - net	28	28	55	55
Management and other fees - net	11,340	10,996	22,554	22,024
Management and other fees - related medical practices - net	2,693	2,390	5,386	4,780
Total Revenues - net	21,164	21,451	42,144	43,197
COSTS AND EXPENSES
Costs related to patient fee revenue	2,649	2,958	5,169	5,820
Costs related to product sales	192	120	325	450
Costs related to service and repair fees	608	772	1,234	1,522
Costs related to service and repair fees - related parties	9	10	18	20
Costs related to management and other fees	6,237	6,203	11,788	12,208
Costs related to management and other fees - related medical practices	1,522	1,621	2,950	3,157
Research and development	424	583	824	1,055
Selling, general and administrative	4,541	4,163	10,704	8,458
Total Costs and Expenses	16,182	16,430	33,012	32,690
INCOME
Income From Operations	4,982	5,021	9,132	10,507
Other Expenses			(140)
Interest Expense	(16)	(19)	(38)	(40)
Investment Income	75	139	187	287
Income Before Provision for Income Taxes and Noncontrolling Interests	5,041	5,141	9,141	10,754
Provision for Income Taxes	(1,113)	(932)	(1,962)	(2,039)
Net Income	3,928	4,209	7,179	8,715
Net Income - Noncontrolling Interests	(817)	(1,105)	(1,560)	(2,313)
Net Income - Attributable to FONAR	$ 3,111	$ 3,104	$ 5,619	$ 6,402
Basic Net Income Per Share	$ 0.48	$ 0.48	$ 0.87	$ 0.99
Weighted Average Basic Shares Outstanding	6,465	6,447	6,456	6,440
Common Stock
INCOME
Net Income - Attributable to FONAR	$ 2,923	$ 2,914	$ 5,281	$ 6,010
Basic Net Income Per Share	$ 0.45	$ 0.45	$ 0.82	$ 0.93
Diluted Net Income Per Share	$ 0.44	$ 0.44	$ 0.80	$ 0.92
Weighted Average Basic Shares Outstanding	6,465	6,447	6,456	6,440
Weighted Average Diluted Shares Outstanding	6,593	6,575	6,584	6,568
Class A Non-Voting Preferred Stock
INCOME
Net Income - Attributable to FONAR	$ 140	$ 142	$ 252	$ 292
Class C Common Stock
INCOME
Net Income - Attributable to FONAR	$ 48	$ 48	$ 86	$ 100
Basic Net Income Per Share	$ 0.12	$ 0.13	$ 0.23	$ 0.26
Diluted Net Income Per Share	0.12	0.13	0.23	0.26
Basic and Diluted Income Per Share	$ 0.12	$ 0.13	$ 0.23	$ 0.26
Weighted Average Basic Shares Outstanding	383	383	383	383
Weighted Average Diluted Shares Outstanding	383	383	383	383

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Paid in capital in excess of par value	Accumulated Deficit	Treasury Stock	Non Controlling Interest	Total
Balance - Beginning, Value at Jun. 30, 2019	$ 1	$ 181,086	$ (64,455)	$ (675)	$ 2,156	$ 118,113
Issuance of common stock (value)		1,990				1,990
Net Income			6,402			6,402
Distributions - noncontrolling					(3,735)	(3,735)
Income - Noncontrolling interests					2,313	2,313
Balance - Ending, Value at Dec. 31, 2019	1	183,076	(58,053)	(675)	734	125,083
Balance - Beginning, Value at Sep. 30, 2019	1	183,076	(61,157)	(675)	1,609	122,854
Net Income			3,104			3,104
Distributions - noncontrolling					(1,980)	(1,980)
Income - Noncontrolling interests					1,105	1,105
Balance - Ending, Value at Dec. 31, 2019	1	183,076	(58,053)	(675)	734	125,083
Balance - Beginning, Value at Jun. 30, 2020	1	183,076	(56,215)	(675)	55	126,242
Issuance of common stock (value)		2,025				2,025
Net Income			5,619			5,619
Distributions - noncontrolling					(3,570)	(3,570)
Income - Noncontrolling interests					1,560	1,560
Balance - Ending, Value at Dec. 31, 2020	1	185,101	(50,596)	(675)	(1,955)	131,876
Balance - Beginning, Value at Sep. 30, 2020	1	183,076	(53,707)	(675)	(642)	128,053
Issuance of common stock (value)		2,025				2,025
Net Income			3,111			3,111
Distributions - noncontrolling					(2,130)	(2,130)
Income - Noncontrolling interests					817	817
Balance - Ending, Value at Dec. 31, 2020	$ 1	$ 185,101	$ (50,596)	$ (675)	$ (1,955)	$ 131,876

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash Flows from Operating Activities:
Net income	$ 7,179	$ 8,715
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,009	2,003
Amortization on right-of-use assets	1,922	1,656
Provision (Recovery) for bad debts	2,825	(978)
Deferred income tax - net	1,962	1,816
Compensatory element of stock issuances	83
Stock issued for costs and expense	1,941	1,990
Abandoned patents	1
(Increase) decrease in operating assets, net:
Accounts, medical and management fee receivable(s)	(5,549)	(4,300)
Notes receivable	25	11
Costs and estimated earnings in excess of billings on uncompleted contracts		372
Inventories	(195)	47
Income tax receivable	671
Prepaid expenses and other current assets	452	330
Other assets	(1)	(45)
Increase (decrease) in operating liabilities, net:
Accounts payable	233	(576)
Other current liabilities	(2,748)	430
Operating lease liabilities	(1,657)	(1,447)
Financing lease liabilities	24
Customer deposits	378	28
Billings in excess of costs and estimated earnings on uncompleted contracts		12
Other liabilities	(3)	123
Net cash provided by operating activities	9,552	10,187
Cash Flows from Investing Activities:
Purchases of property and equipment	(2,143)	(4,656)
Purchase of short term investment		(199)
Cost of patents	(90)	(62)
Net cash used in investing activities	(2,233)	(4,917)
Cash Flows from Financing Activities:
Repayment of borrowings and capital lease obligations	(35)	(24)
Proceeds from debt	63
Distributions to noncontrolling interests	(3,570)	(3,735)
Net cash used in financing activities	(3,542)	(3,759)
Net Increase in Cash and Cash Equivalents	3,777	1,511
Cash and Cash Equivalents - Beginning of Period	36,802	13,882
Cash and Cash Equivalents - End of Period	$ 40,579	$ 15,393

NOTE 1 - DESCRIPTION OF BUSINES

NOTE 1 - DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	6 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
NOTE 1 - DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Effective July 1, 2015, the Company restructured the corporate organization of the management of diagnostic imaging centers segment of our business. The reorganization was structured to more completely integrate the operations of Health Management Corporation of America and HDM. Imperial contributed all of its assets (which were utilized in the business of Health Management Corporation of America) to HDM and received a 24.2% interest in HDM. Health Management Corporation of America retained a direct ownership interest of 45.8% in HDM, and the original investors in HDM retained a 30.0% ownership interest in the newly expanded HDM. The entire management of diagnostic imaging centers business segment is now being conducted by HDM, operating under the name “Health Management Company of America”. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended December 31, 2020, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K filed on October 1, 2020 for the fiscal year ended June 30, 2020. 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. At the end of fiscal year ending June 30, 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 we negotiated with the majority of all landlords. The Company also received some government stimulus funds from the Paycheck Protection Program (“PPP”) 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 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	6 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships (collectively the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Revenues 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. 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. Earnings Per Share Basic earnings per share (“EPS”) is computed based upon the weighted average number of shares of common stock and stock equivalents outstanding, net of common stock. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class method”, the Company used the Two-Class method for calculating basic income per share and applied the if converted method in calculating diluted income per share for the three and six months ended December 31, 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 three and six months ended December 31, 2020 and 2019, diluted EPS for common shareholders includes 128 shares upon conversion of Class C Common. Three months ended Three months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 3,111 $ 2,923 $ 48 $ 3,104 $ 2,914 $ 48 Denominator: Weighted average shares outstanding 6,465 6,465 383 6,447 6,447 383 Basic income per common share $ 0.48 $ 0.45 $ 0.12 $ 0.48 $ 0.45 $ 0.13 Diluted Denominator: 6,465 383 6,447 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,593 383 6,575 383 Diluted income per common share $ 0.44 $ 0.12 $ 0.44 $ 0.13 Six months ended Six months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 5,619 $ 5,281 $ 86 $ 6,402 $ 6,010 $ 100 Denominator: Weighted average shares outstanding 6,456 6,456 383 6,440 6,440 383 Basic income per common share $ 0.87 $ 0.82 $ 0.23 $ 0.99 $ 0.93 $ 0.26 Diluted Denominator: 6,456 383 6,440 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,584 383 6,568 383 Diluted income per common share $ 0.80 $ 0.23 $ 0.92 $ 0.26 Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 (“ASU 2019-12”), Income Taxes (Topic 740). ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other areas of the standard. ASU 2019-12 will be effective beginning in the first quarter of 2021. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. We are current evaluating the impact this ASU will have on our financial statements and related disclosures as well as the timing of the adoption. 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. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of December 31, 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 condensed 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 consolidated net income for any periods presented.

NOTE 3 - ACCOUNTS RECEIVABLE, M

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE	6 Months Ended
	Dec. 31, 2020
Receivables [Abstract]
NOTE 3 - ACCOUNTS RECEIVABLE. MEDICAL RECEIVABLES AND MANAGEMENT AND OTHER FEES RECEIVABLE (USD $)	NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE Receivables, net is comprised of the following at December 31, 2020, and June 30, 2020: December 31, 2020 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,686 $ 515 $ 4,171 Accounts receivable - related party $ 72 — $ 72 Medical receivable $ 16,373 $ — $ 16,373 Management and other fees receivable $ 43,298 $ 13,490 $ 29,808 Management and other fees receivable from related medical practices ("PC’s") $ 10,982 $ 3,720 $ 7,262 June 30, 2020 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,828 $ 515 $ 4,313 Accounts receivable - related party $ 6 — $ 6 Medical receivable $ 16,172 $ — $ 16,172 Management and other fees receivable $ 38,501 $ 11,063 $ 27,438 Management and other fees receivable from related medical practices ("PC’s") $ 10,218 $ 3,322 $ 6,896 The Company's customers are concentrated in the healthcare industry. Accounts Receivable Credit risk with respect to the Company’s accounts receivable related to product sales and service and repair fees is limited due to the customer advances received prior to the commencement of work performed and the billing of amounts to customers as sub-assemblies are completed. Service and repair fees are billed on a monthly or quarterly basis and the Company does not continue providing these services if accounts receivable become past due. The Company controls credit risk with respect to accounts receivable from service and repair fees through its credit evaluation process, credit limits, monitoring procedures and reasonably short collection terms. The Company performs ongoing credit authorizations before a product sales contract is entered into or service and repair fees are provided. 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 as of December 31, 2020 is as follows: 2022 $ 853 2023 827 2024 752 2025 96 Total $ 2,528 Medical Receivables 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 (PC's) substantially consist of fees outstanding under management agreements. Payment of the outstanding fees is dependent on collection by the PC's of fees from third party medical reimbursement organizations, principally insurance companies and health management organizations. Payment of the management fee receivables from the PC’s may be impaired by the inability of the PC’s to collect in a timely manner their medical fees from the third party payors, particularly insurance carriers covering automobile no-fault and workers compensation claims due to longer payment cycles and rigorous informational requirements and certain other disallowed claims. Approximately 66% and 60% of the PCs’ net revenues for the three months ended December 31, 2020 and 2019, respectively, were derived from no-fault and personal injury protection claims. Approximately 66% and 63% of the PCs’ net revenue for the six months ended December 31, 2020 and 2019, respectively, were derived from no-fault and personal injury protection claims. The Company considers the aging of its accounts receivable in determining the amount of allowance for doubtful accounts. The Company generally takes all legally available steps to collect its receivables. Credit losses associated with the receivables are provided for in the condensed consolidated financial statements and have historically been within management's expectations. Net revenues from management and other fees charged to the related PCs accounted for approximately 12.7% and 11.1% of the consolidated net revenues for the three months ended December 31, 2020 and 2019, respectively. Net revenues from management and other fees charged to the related PCs accounted for approximately 12.8% and 11.1% of the consolidated net revenues for the six months ended December 31, 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 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. Additional Company managed entities also operate under a guaranty agreement, pursuant to which management fees are payable to the Company. The Company’s patient fee revenue, net of contractual allowances and discounts for the three and six months ended December 31, 2020 and 2019 are summarized in the following table. For the Three Months Ended December 31, 2020 2019 Commercial Insurance/ Managed Care $ 966 $ 1,335 Medicare/Medicaid 206 276 Workers' Compensation/Personal Injury 3,543 4,112 Other 523 273 Patient Fee Revenue, net of contractual allowances and discounts $ 5,238 $ 5,996 For the Six Months Ended December 31, 2020 2019 Commercial Insurance/ Managed Care $ 1,912 $ 2,689 Medicare/Medicaid 404 542 Workers' Compensation/Personal Injury 6,930 8,406 Other 1,084 404 Patient Fee Revenue, net of contractual allowances and discounts $ 10,330 $ 12,041

NOTE 4 - OPERATING & FINANCING

NOTE 4 - OPERATING & FINANCING LEASES	6 Months Ended
	Dec. 31, 2020
Leases [Abstract]
NOTE 4 - OPERATING & FINANCING LEASES	NOTE 4 – OPERATING & FINANCING LEASES During February 2016, FASB 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 foOTr 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 the 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 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 December 31, 2020 is as follows: Year Ending December 31, Operating Lease Payments Financing Lease Payments 2021 $ 4,960 $ 244 2022 4,877 244 2023 4,599 244 2024 4,480 244 2025 4,301 244 Thereafter 17,505 287 Present value discount (8,904 ) (156 ) Total lease liability $ 31,818 $ 1,351

NOTE 5 - INVENTORIES

NOTE 5 - INVENTORIES	6 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
NOTE 5 - INVENTORIES	NOTE 5 - INVENTORIES Inventories included in the accompanying condensed consolidated balance sheets consist of the following: December 31, 2020 June 30, 2020 Purchased parts, components and supplies $ 1,614 $ 1,544 Work-in-process 230 105 Total Inventories $ 1,844 $ 1,649

NOTE 6 - COSTS AND ESTIMATED EA

NOTE 6 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	6 Months Ended
	Dec. 31, 2020
Notes to Financial Statements
NOTE 6 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	NOTE 6 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS Information relating to uncompleted contracts is as follows: December 31, 2020 June 30, 2020 Costs incurred on uncompleted contracts $ 448 $ 448 Estimated earnings 309 309 Subtotal 757 757 Less: Billings to date 604 604 Total Costs and estimated earnings in excess of billings on uncompleted contracts $ 153 $ 153

NOTE 7 - OTHER INTANGIBLE ASSET

NOTE 7 - OTHER INTANGIBLE ASSETS	6 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
NOTE 7 - OTHER INTANGIBLE ASSETS	NOTE 7 – OTHER INTANGIBLE ASSETS Other intangible assets, net of accumulated amortization, in the accompanying condensed consolidated balance sheets consist of the following: December 31, 2020 June 30, 2020 Capitalized software development costs $ 7,005 $ 7,005 Patents and copyrights 5,171 5,082 Non-compete 4,100 4,100 Customer relationships 3,800 3,800 Gross Other intangible assets 20,076 19,987 Less: Accumulated amortization 16,062 15,878 Other Intangible Assets $ 4,014 $ 4,109 Amortization of patents and copyrights for the three months ended December 31, 2020 and 2019 amounted to $44 and $47, respectively. Amortization of non-compete for the three months ended December 31, 2020 and 2019 amounted to $0 and $147, respectively. Amortization of customer relationships for the three months ended December 31, 2020 and 2019 amounted to $47 and $47, respectively. Amortization of patents and copyrights for the six months ended December 31, 2020 and 2019 amounted to $89 and $94, respectively. Amortization of non-compete for the six months ended December 31, 2020 and 2019 amounted to $0 and $293, respectively. Amortization of customer relationships for the six months ended December 31, 2020 and 2019 amounted to $95 and $95, respectively.

NOTE 8 - OTHER CURRENT LIABILIT

NOTE 8 - OTHER CURRENT LIABILITIES	6 Months Ended
	Dec. 31, 2020
Other Liabilities, Current [Abstract]
NOTE 8 - OTHER CURRENT LIABILITIES	NOTE 8 – OTHER CURRENT LIABILITIES Other current liabilities in the accompanying condensed consolidated balance sheets consist of the following: December 31, 2020 June 30, 2020 Accrued salaries, commissions and payroll taxes $ 2,573 $ 4,492 Litigation accruals 9 443 Sales tax payable 1,123 1,353 Legal and other professional fees 276 113 Accounting fees 180 120 Self-funded health insurance reserve 123 87 Accrued interest and penalty 511 877 Other 789 700 Other Current Liabilities $ 5,584 $ 8,185

NOTE 9 - STOCKHOLDERS EQUITY

NOTE 9 - STOCKHOLDERS EQUITY	6 Months Ended
	Dec. 31, 2020
STOCKHOLDERS' EQUITY:
NOTE 9 - STOCKHOLDERS EQUITY	NOTE 9 – STOCKHOLDERS EQUITY Common Stock During the six months ended December 31, 2020, the Company issued 102 shares of common stock for costs and expenses of $1,941 and 4 shares of common stock to employees and consultants as compensation valued at $83. During the six months ended December 31, 2019, the Company issued 90 shares of common stock for costs and expenses of $1,990.

NOTE 10 - SEGMENT AND RELATED I

NOTE 10 - SEGMENT AND RELATED INFORMATION	6 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
NOTE 10 - SEGMENT AND RELATED INFORMATION	NOTE 10 - SEGMENT AND RELATED INFORMATION The Company operates in two industry segments - manufacturing and the servicing of medical equipment and management of diagnostic imaging centers. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as disclosed in the Company’s 10-K as of June 30, 2020. All inter-segment sales are market-based. The Company evaluates performance based on income or loss from operations. The Company operates in two industry segments - manufacturing and the servicing of medical equipment and management of diagnostic imaging centers. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as disclosed in the Company’s 10-K as of June 30, 2020. All inter-segment sales are market-based. The Company evaluates performance based on income or loss from operations. Summarized financial information concerning the Company's reportable segments is shown in the following table: Medical Management Totals For the three months ended Dec. 31, 2020 Net revenues from external customers $ 1,893 $ 19,271 $ 21,164 Inter-segment net revenues $ 219 $ — $ 219 (Loss) Income from operations $ (8 ) $ 4,990 $ 4,982 Depreciation and amortization $ 65 $ 977 $ 1,042 Capital expenditures $ 70 $ 1,728 $ 1,798 For the three months ended Dec. 31, 2019 Net revenues from external customers $ 2,069 $ 19,382 $ 21,451 Inter-segment net revenues $ 219 $ — $ 219 (Loss) Income from operations $ (790 ) $ 5,811 $ 5,021 Depreciation and amortization $ 94 $ 914 $ 1,008 Capital expenditures $ 153 $ 2,116 $ 2,269 Medical Management Totals For the six months ended Dec. 31, 2020 Net revenues from external customers $ 3,874 $ 38,270 $ 42,144 Inter-segment net revenues $ 438 $ — $ 438 (Loss) Income from operations $ (569 ) $ 9,701 $ 9,132 Depreciation and amortization $ 132 $ 1,878 $ 2,010 Capital expenditures $ 90 $ 2,143 $ 2,233 For the six months ended Dec. 31, 2019 Net revenues from external customers $ 4,352 $ 38,845 $ 43,197 Inter-segment net revenues $ 438 $ — $ 438 (Loss) Income from operations $ (1,526 ) $ 12,033 $ 10,507 Depreciation and amortization $ 185 $ 1,818 $ 2,003 Capital expenditures $ 1,754 $ 2,964 $ 4,718

NOTE 11 - SUPPLEMENTAL CASH FLO

NOTE 11 - SUPPLEMENTAL CASH FLOW INFORMATION	6 Months Ended
	Dec. 31, 2020
Supplemental Cash Flow Elements [Abstract]
NOTE 11 - SUPPLEMENTAL CASH FLOW INFORMATION	NOTE 11 – SUPPLEMENTAL CASH FLOW INFORMATION During the six months ended December 31, 2020 and December 31, 2019, the Company paid $35 and $14 for interest, respectively. During the six months ended December 31, 2020 and December 31, 2019, the Company paid $145 and $228 for income taxes, respectively.

NOTE 12 - COMMITMENTS AND CONTI

NOTE 12 - COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
NOTE 12 - COMMITMENTS AND CONTINGENCIES	NOTE 12 – COMMITMENTS AND CONTINGENCIES Litigation The Company is subject to legal proceedings and claims arising from the ordinary course of its business, including personal injury, customer contract and employment claims. In the opinion of management, the aggregate liability, if any, with respect to such actions, will not have a material adverse effect on the consolidated financial position or results of operations of the Company. There were no material changes in litigation from that reported in our Form 10-K for the fiscal year ended June 30, 2020. Other Matters 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 was paid by the Company’s insurance in September 2020. The Company paid the remaining balance of $315 in September 2020. The Company is also delinquent in filing sales tax returns for certain states, for which the Company has transacted business. As of December 31, 2020, the Company has recorded tax obligations of approximately $1.1 million plus interest and penalties of approximately $466. The Company is in the process of determining the 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 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 December 31, 2020 and June 30, 2020, the Company had approximately $123 and $87, respectively, in reserve for its self-funded health insurance programs. The reserves are included in “Other current liabilities” in the condensed 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 periods covered by this report.

NOTE 13 - INCOME TAXES

NOTE 13 - INCOME TAXES	6 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
NOTE 13 - INCOME TAXES	NOTE 13 - INCOME TAXES In accordance with ASC 740-270, Income Taxes – Interim Reporting, the Company is required at the end of each interim period to determine the best estimate of its annual effective tax rate and apply that rate to year-to-date ordinary income or loss. The resulting tax expense (or benefit) is adjusted for the tax effect of specific events, if any, required to be discretely recognized in the interim period as they occur. For the six months ended December 31, 2020 and 2019, the Company recorded income tax expense of $1,962 in 2020 as compared to $2,039 in 2019. The 2020 provision is comprised of a current income tax component of $0 and a deferred income tax component of $1,962. Obligations for any liability associated with the current income tax provision, has been reduced, primarily resulting from the benefits and utilization of net operating loss carryforwards. 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. The Company recorded a deferred tax asset of $16,848 and a deferred tax liability of $234 as of December 31, 2020, primarily relating to net operating loss carryforwards of approximately $47,208 available to offset future taxable income through 2031. The net operating losses begin to expire in 2023 for federal tax and state income tax purposes. 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 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 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. 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 December 31, 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 those 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.

NOTE 14 - SUBSEQUENT EVENTS

NOTE 14 - SUBSEQUENT EVENTS	6 Months Ended
	Dec. 31, 2020
Subsequent Events [Abstract]
NOTE 14 - SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS The Company has evaluated events that occurred subsequent to December 31, 2020 and through the date the condensed consolidated financial statements were issued.

NOTE 2 - SUMMARY OF SIGNIFICA_2

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships (collectively the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation.
Revenue	Revenues 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. 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.
Earnings Per Share	Earnings Per Share Basic earnings per share (“EPS”) is computed based upon the weighted average number of shares of common stock and stock equivalents outstanding, net of common stock. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class method”, the Company used the Two-Class method for calculating basic income per share and applied the if converted method in calculating diluted income per share for the three and six months ended December 31, 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 three and six months ended December 31, 2020 and 2019, diluted EPS for common shareholders includes 128 shares upon conversion of Class C Common. Three months ended Three months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 3,111 $ 2,923 $ 48 $ 3,104 $ 2,914 $ 48 Denominator: Weighted average shares outstanding 6,465 6,465 383 6,447 6,447 383 Basic income per common share $ 0.48 $ 0.45 $ 0.12 $ 0.48 $ 0.45 $ 0.13 Diluted Denominator: 6,465 383 6,447 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,593 383 6,575 383 Diluted income per common share $ 0.44 $ 0.12 $ 0.44 $ 0.13 Six months ended Six months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 5,619 $ 5,281 $ 86 $ 6,402 $ 6,010 $ 100 Denominator: Weighted average shares outstanding 6,456 6,456 383 6,440 6,440 383 Basic income per common share $ 0.87 $ 0.82 $ 0.23 $ 0.99 $ 0.93 $ 0.26 Diluted Denominator: 6,456 383 6,440 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,584 383 6,568 383 Diluted income per common share $ 0.80 $ 0.23 $ 0.92 $ 0.26
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 (“ASU 2019-12”), Income Taxes (Topic 740). ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other areas of the standard. ASU 2019-12 will be effective beginning in the first quarter of 2021. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. We are current evaluating the impact this ASU will have on our financial statements and related disclosures as well as the timing of the adoption. 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. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of December 31, 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 condensed 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 consolidated net income for any periods presented.

NOTE 2 - SUMMARY OF SIGNIFICA_3

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Earnings Per Share	Earnings Per Share Three months ended Three months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 3,111 $ 2,923 $ 48 $ 3,104 $ 2,914 $ 48 Denominator: Weighted average shares outstanding 6,465 6,465 383 6,447 6,447 383 Basic income per common share $ 0.48 $ 0.45 $ 0.12 $ 0.48 $ 0.45 $ 0.13 Diluted Denominator: 6,465 383 6,447 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,593 383 6,575 383 Diluted income per common share $ 0.44 $ 0.12 $ 0.44 $ 0.13 Six months ended Six months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 5,619 $ 5,281 $ 86 $ 6,402 $ 6,010 $ 100 Denominator: Weighted average shares outstanding 6,456 6,456 383 6,440 6,440 383 Basic income per common share $ 0.87 $ 0.82 $ 0.23 $ 0.99 $ 0.93 $ 0.26 Diluted Denominator: 6,456 383 6,440 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,584 383 6,568 383 Diluted income per common share $ 0.80 $ 0.23 $ 0.92 $ 0.26

NOTE 3 - ACCOUNTS RECEIVABLE,_2

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Tables)	6 Months Ended
	Dec. 31, 2020
Receivables [Abstract]
Summary of Allowance For Doubtful Accounts	Receivables, net is comprised of the following at December 31, 2020, and June 30, 2020: December 31, 2020 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,686 $ 515 $ 4,171 Accounts receivable - related party $ 72 — $ 72 Medical receivable $ 16,373 $ — $ 16,373 Management and other fees receivable $ 43,298 $ 13,490 $ 29,808 Management and other fees receivable from related medical practices ("PC’s") $ 10,982 $ 3,720 $ 7,262 June 30, 2020 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,828 $ 515 $ 4,313 Accounts receivable - related party $ 6 — $ 6 Medical receivable $ 16,172 $ — $ 16,172 Management and other fees receivable $ 38,501 $ 11,063 $ 27,438 Management and other fees receivable from related medical practices ("PC’s") $ 10,218 $ 3,322 $ 6,896
Receivables - Non Current - net	Future revenue to be recognized over the following four years as of December 31, 2020 is as follows: 2022 $ 853 2023 827 2024 752 2025 96 Total $ 2,528
Patient fee revenue - net	The Company’s patient fee revenue, net of contractual allowances and discounts for the three and six months ended December 31, 2020 and 2019 are summarized in the following table. For the Three Months Ended December 31, 2020 2019 Commercial Insurance/ Managed Care $ 966 $ 1,335 Medicare/Medicaid 206 276 Workers' Compensation/Personal Injury 3,543 4,112 Other 523 273 Patient Fee Revenue, net of contractual allowances and discounts $ 5,238 $ 5,996 For the Six Months Ended December 31, 2020 2019 Commercial Insurance/ Managed Care $ 1,912 $ 2,689 Medicare/Medicaid 404 542 Workers' Compensation/Personal Injury 6,930 8,406 Other 1,084 404 Patient Fee Revenue, net of contractual allowances and discounts $ 10,330 $ 12,041

NOTE 4 - OPERATING & FINANCIN_2

NOTE 4 - OPERATING & FINANCING LEASES (Tables)	6 Months Ended
	Dec. 31, 2020
Leases [Abstract]
Lease, Liability, Maturity	A reconciliation of operating and financing lease payments undiscounted cash flows to lease liabilities recognized as of December 31, 2020 is as follows: Year Ending December 31, Operating Lease Payments Financing Lease Payments 2021 $ 4,960 $ 244 2022 4,877 244 2023 4,599 244 2024 4,480 244 2025 4,301 244 Thereafter 17,505 287 Present value discount (8,904 ) (156 ) Total lease liability $ 31,818 $ 1,351

NOTE 5 - INVENTORIES (Tables)

NOTE 5 - INVENTORIES (Tables)	6 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories included in the accompanying condensed consolidated balance sheets consist of the following: December 31, 2020 June 30, 2020 Purchased parts, components and supplies $ 1,614 $ 1,544 Work-in-process 230 105 Total Inventories $ 1,844 $ 1,649

NOTE 6 - COSTS AND ESTIMATED _2

NOTE 6 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables)	6 Months Ended
	Dec. 31, 2020
Notes to Financial Statements
Information relating to uncompleted contracts	Information relating to uncompleted contracts is as follows: December 31, 2020 June 30, 2020 Costs incurred on uncompleted contracts $ 448 $ 448 Estimated earnings 309 309 Subtotal 757 757 Less: Billings to date 604 604 Total Costs and estimated earnings in excess of billings on uncompleted contracts $ 153 $ 153

NOTE 7 - OTHER INTANGIBLE ASS_2

NOTE 7 - OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Other intangible assets - net	Other intangible assets, net of accumulated amortization, in the accompanying condensed consolidated balance sheets consist of the following: December 31, 2020 June 30, 2020 Capitalized software development costs $ 7,005 $ 7,005 Patents and copyrights 5,171 5,082 Non-compete 4,100 4,100 Customer relationships 3,800 3,800 Gross Other intangible assets 20,076 19,987 Less: Accumulated amortization 16,062 15,878 Other Intangible Assets $ 4,014 $ 4,109

NOTE 8 - OTHER CURRENT LIABIL_2

NOTE 8 - OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Dec. 31, 2020
Other Liabilities, Current [Abstract]
Other current liabilities	Other current liabilities in the accompanying condensed consolidated balance sheets consist of the following: December 31, 2020 June 30, 2020 Accrued salaries, commissions and payroll taxes $ 2,573 $ 4,492 Litigation accruals 9 443 Sales tax payable 1,123 1,353 Legal and other professional fees 276 113 Accounting fees 180 120 Self-funded health insurance reserve 123 87 Accrued interest and penalty 511 877 Other 789 700 Other Current Liabilities $ 5,584 $ 8,185

NOTE 10 - SEGMENT AND RELATED_2

NOTE 10 - SEGMENT AND RELATED INFORMATION (Tables)	6 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
Segment information	Summarized financial information concerning the Company's reportable segments is shown in the following table: Medical Management Totals For the three months ended Dec. 31, 2020 Net revenues from external customers $ 1,893 $ 19,271 $ 21,164 Inter-segment net revenues $ 219 $ — $ 219 (Loss) Income from operations $ (8 ) $ 4,990 $ 4,982 Depreciation and amortization $ 65 $ 977 $ 1,042 Capital expenditures $ 70 $ 1,728 $ 1,798 For the three months ended Dec. 31, 2019 Net revenues from external customers $ 2,069 $ 19,382 $ 21,451 Inter-segment net revenues $ 219 $ — $ 219 (Loss) Income from operations $ (790 ) $ 5,811 $ 5,021 Depreciation and amortization $ 94 $ 914 $ 1,008 Capital expenditures $ 153 $ 2,116 $ 2,269 Medical Management Totals For the six months ended Dec. 31, 2020 Net revenues from external customers $ 3,874 $ 38,270 $ 42,144 Inter-segment net revenues $ 438 $ — $ 438 (Loss) Income from operations $ (569 ) $ 9,701 $ 9,132 Depreciation and amortization $ 132 $ 1,878 $ 2,010 Capital expenditures $ 90 $ 2,143 $ 2,233 For the six months ended Dec. 31, 2019 Net revenues from external customers $ 4,352 $ 38,845 $ 43,197 Inter-segment net revenues $ 438 $ — $ 438 (Loss) Income from operations $ (1,526 ) $ 12,033 $ 10,507 Depreciation and amortization $ 185 $ 1,818 $ 2,003 Capital expenditures $ 1,754 $ 2,964 $ 4,718

NOTE 1 - DESCRIPTION OF BUSIN_2

NOTE 1 - DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details Narrative) - Health Diagnostics Management LLC (HDM)	Jul. 01, 2015
The ownership interest of Imperial Management Services after reorganization of newly expanded HDM (percent).	24.20%
The ownership interest of Health Management Corporation of America after reorganization of newly expanded HDM (percent).	45.80%
The ownership interest of the original investors of HDM after reorganization of newly expanded HDM (percent).	30.00%

NOTE 2 - SUMMARY OF SIGNIFICA_4

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Basic Numerator: Net income available to common stockholders	$ 3,111	$ 3,104	$ 5,619	$ 6,402
Basic Denominator: Weighted average shares outstanding	6,465	6,447	6,456	6,440
Basic income per common share	$ 0.48	$ 0.48	$ 0.87	$ 0.99
Shares included upon conversion of Class C Common to calculate a diluted EPS	128	128	128	128
Common Stock
Basic Numerator: Net income available to common stockholders	$ 2,923	$ 2,914	$ 5,281	$ 6,010
Basic Denominator: Weighted average shares outstanding	6,465	6,447	6,456	6,440
Basic income per common share	$ 0.45	$ 0.45	$ 0.82	$ 0.93
Shares included upon conversion of Class C Common to calculate a diluted EPS	128	128	128	128
Total Denominator for diluted earnings per share	6,593	6,575	6,584	6,568
Diluted income per common share	$ 0.44	$ 0.44	$ 0.80	$ 0.92
Class C Common Stock
Basic Numerator: Net income available to common stockholders	$ 48	$ 48	$ 86	$ 100
Basic Denominator: Weighted average shares outstanding	383	383	383	383
Basic income per common share	$ 0.12	$ 0.13	$ 0.23	$ 0.26
Shares included upon conversion of Class C Common to calculate a diluted EPS
Total Denominator for diluted earnings per share	383	383	383	383
Diluted income per common share	$ 0.12	$ 0.13	$ 0.23	$ 0.26

NOTE 2 - SUMMARY OF SIGNIFICA_5

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Shares included upon conversion of Class C Common to calculate a diluted EPS.	128	128	128	128

NOTE 3 - ACCOUNTS RECEIVABLE,_3

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - Receivables, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Accounts receivable	$ 4,171	$ 4,313
Accounts receivable - Related party	72	6
Medical Receivables	16,373	16,172
Management and other fees receivable	29,808	27,438
Management and other fees receivable from related medical practices ("PC's")	7,262	6,896
Gross Receivable
Accounts receivable	4,686	4,828
Accounts receivable - Related party	72	6
Medical Receivables	16,373	16,172
Management and other fees receivable	43,298	38,501
Management and other fees receivable from related medical practices ("PC's")	10,982	10,218
Allowance for Doubtful Accounts
Accounts receivable	515	515
Accounts receivable - Related party
Medical Receivables
Management and other fees receivable	13,490	11,063
Management and other fees receivable from related medical practices ("PC's")	$ 3,720	$ 3,322

NOTE 3 - ACCOUNTS RECEIVABLE,_4

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE & MANAGEMENT & OTHER FEES RECEIVABLE - Long Term Accounts Receivable (Details) $ in Thousands	Dec. 31, 2020USD ($)
Receivables, Long-term Contracts or Programs [Abstract]
2022	$ 853
2023	827
2024	752
2025	96
Total	$ 2,528

NOTE 3 - ACCOUNTS RECEIVABLE,_5

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - Patient Fees Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Patient fee revenue, net of contractual allowances and discounts	$ 5,238	$ 5,996	$ 10,330	$ 12,041
Commercial Insurance / Managed Care
Patient fee revenue, net of contractual allowances and discounts	966	1,335	1,912	2,689
Medicare/Medicaid
Patient fee revenue, net of contractual allowances and discounts	206	276	404	542
Workers Compensation/Personal Injury
Patient fee revenue, net of contractual allowances and discounts	3,543	4,112	6,930	8,406
Other
Patient fee revenue, net of contractual allowances and discounts	$ 523	$ 273	$ 1,084	$ 404

NOTE 3 - ACCOUNTS RECEIVABLE,_6

NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - (Details Narrative)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 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%	60.00%	66.00%	63.00%
Percentage of consolidated net revenue from management fees charged to related party medical practices	12.70%	11.10%	12.80%	11.10%

NOTE 4 - OPERATING & FINANCIN_3

NOTE 4 - OPERATING & FINANCING LEASES (Details) $ in Thousands	Dec. 31, 2020USD ($)
Operating Lease Payments
2021	$ 4,960
2022	4,877
2023	4,599
2024	4,480
2025	4,301
Thereafter	17,505
Present Value discount	(8,904)
Total lease liability	31,818
Financing Lease Payments
2021	244
2022	244
2023	244
2024	244
2025	244
Thereafter	287
Present Value discount	(156)
Total lease liability	$ 1,351

NOTE 4 - OPERATING & FINANCIN_4

NOTE 4 - OPERATING & FINANCING LEASES (Details Narrative) $ in Thousands	6 Months Ended
	Dec. 31, 2020USD ($)
Leases [Abstract]
Receivable from landlord for tenant improvements	$ 202
Operating lease payments	$ 33,300

NOTE 5 - INVENTORIES (Details)

NOTE 5 - INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Inventory Disclosure [Abstract]
Purchased parts, components and supplies	$ 1,614	$ 1,544
Work-in-process	230	105
Total Inventories	$ 1,844	$ 1,649

NOTE 6 - COSTS AND ESTIMATED _3

NOTE 6 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS - Information relating to uncompleted contracts (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Notes to Financial Statements
Costs incurred on uncompleted contracts	$ 448	$ 448
Estimated earnings	309	309
Costs and estimated earnings on uncompleted contracts	757	757
Less: Billings to date	604	604
Total costs and estimated earnings in excess of billings on uncompleted contracts	$ 153	$ 153

NOTE 7 - OTHER INTANGIBLE ASS_3

NOTE 7 - OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Gross other intangible assets	$ 20,076	$ 19,987
Less: Accumulated amortization	16,062	15,878
Other intangible assets-net	4,014	4,109
Capitalized software development costs
Gross other intangible assets	7,005	7,005
Patents and copyrights
Gross other intangible assets	5,171	5,082
Non-compete
Gross other intangible assets	4,100	4,100
Customer relationships
Gross other intangible assets	$ 3,800	$ 3,800

NOTE 7 - OTHER INTANGIBLE ASS_4

NOTE 7 - OTHER INTANGIBLE ASSETS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Patents and copyrights
Amortization of intangible assets	$ 44	$ 47	$ 89	$ 94
Non-compete
Amortization of intangible assets	0	147	0	293
Customer relationships
Amortization of intangible assets	$ 47	$ 47	$ 95	$ 95

NOTE 8 - OTHER CURRENT LIABIL_3

NOTE 8 - OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Other Liabilities, Current [Abstract]
Accrued salaries, commissions and payroll taxes	$ 2,573	$ 4,492
Litigation accruals	9	443
Sales tax payable	1,123	1,353
Legal and other professional fees	276	113
Accounting fees	180	120
Self-funded health insurance reserve	123	87
Accrued interest and penalty	511	877
Other	789	700
Other current liabilities	$ 5,584	$ 8,185

NOTE 9 - STOCKHOLDERS EQUITY (D

NOTE 9 - STOCKHOLDERS EQUITY (Details Narrative) - USD ($) shares in Thousands, $ in Thousands	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
STOCKHOLDERS' EQUITY:
Stock issued for cost and expenses, shares	102	90
Stock issued for cost and expenses, value	$ 1,941	$ 1,990
Stock issued for compensation, shares	4
Stock issued for compensation, value	$ 83

NOTE 10 - SEGMENT AND RELATED_3

NOTE 10 - SEGMENT AND RELATED INFORMATION - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Net revenues from external customers	$ 21,164	$ 21,451	$ 42,144	$ 43,197
Inter-segment net revenues	219	219	438	438
(Loss) Income from operations	4,982	5,021	9,132	10,507
Depreciation and amortization	1,042	1,008	2,010	2,003
Capital expenditures	1,798	2,269	2,233	4,718
Medical Equipment
Net revenues from external customers	1,893	2,069	3,874	4,352
Inter-segment net revenues	219	219	438	438
(Loss) Income from operations	(8)	(790)	(569)	(1,526)
Depreciation and amortization	65	94	132	185
Capital expenditures	70	153	90	1,754
Management Of Diagnostic Imaging Centers
Net revenues from external customers	19,271	19,382	38,270	38,845
Inter-segment net revenues
(Loss) Income from operations	4,990	5,811	9,701	12,033
Depreciation and amortization	977	914	1,878	1,818
Capital expenditures	$ 1,728	$ 2,116	$ 2,143	$ 2,964

NOTE 11 - SUPPLEMENTAL CASH F_2

NOTE 11 - SUPPLEMENTAL CASH FLOW INFORMATION ($) (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 35	$ 14
Income taxes paid	$ 145	$ 228

NOTE 12 - COMMITMENTS AND CON_2

NOTE 12 - COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2020	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
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 was paid by the Company’s insurance in September 2020. The Company paid the remaining balance of $315 in September 2020.
Recorded tax obligations	$ 1,100
Tax interest and penalties	466
Maximum limit for individual claims under stop-loss umbrella policy for health insurance	110
Self-funded health insurance reserve	$ 123	$ 87

NOTE 13 - INCOME TAXES (Details

NOTE 13 - INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,962	$ 2,039
Income tax component - current	0
Income tax component - deferred	1,962
Deferred tax assets	16,848
Deferred tax liability	234
Net operating loss (NOL) carryforwards available to offset future taxable income	$ 47,208
Reimbursement of alternative minimum tax credits description	The Company is allowing a full reimbursement of $1,342 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 was received in July 2020. Previously, these credits were to be refunded over a 3 year period.