FONAR (FONR) 10-Q 14 Feb 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Dec. 31, 2021	Feb. 04, 2022
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--06-30
Entity File Number	0-10248
Entity Registrant Name	FONAR CORPORATION
Entity Central Index Key	0000355019
Entity Tax Identification Number	11-2464137
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	110 Marcus Drive
Entity Address, City or Town	Melville
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11747
City Area Code	(631)
Local Phone Number	694-2929
Title of 12(b) Security	Common Stock
Trading Symbol	FONR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Stock [Member]
Entity Common Stock, Shares Outstanding		6,554,210
Common Class B [Member]
Entity Common Stock, Shares Outstanding		146
Common Class C [Member]
Entity Common Stock, Shares Outstanding		382,513
Class A Non Voting Preferred Stock [Member]
Entity Common Stock, Shares Outstanding		313,438

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Current Assets:
Cash and cash equivalents	$ 44,851	$ 44,460
Short term investments	32	32
Accounts receivable – net	4,106	4,526
Accounts receivable - related party	60	12
Medical receivable – net	18,775	17,901
Management and other fees receivable – net	32,136	30,948
Management and other fees receivable – related medical practices – net	8,293	7,814
Inventories	2,099	1,663
Prepaid expenses and other current assets	1,249	1,227
Total Current Assets	111,601	108,583
Accounts receivable – long term	2,316	2,880
Deferred income tax asset	13,522	15,959
Property and equipment – net	21,819	21,850
Right-of-use Asset – operating lease	34,767	30,133
Right-of-use Asset – financing lease	1,028	1,127
Goodwill	4,269	4,269
Other intangible assets – net	3,855	4,038
Other assets	553	667
Total Assets	193,730	189,506
Current Liabilities:
Current portion of long-term debt and capital leases	39	173
Accounts payable	775	1,866
Other current liabilities	4,617	9,162
Unearned revenue on service contracts	3,971	4,366
Unearned revenue on service contracts – related party	55
Contract liabilities	15	15
Operating lease liability - current portion	3,592	3,533
Financing lease liability - current portion	206	203
Customer deposits	454	731
Total Current Liabilities	13,724	20,049
Long-Term Liabilities:
Unearned revenue on service contracts	2,290	2,801
Deferred income tax liability	238	238
Due to related medical practices	93	93
Operating lease liability – net of current portion	33,681	28,975
Financing lease liability – net of current portion	944	1,049
Long-term debt and capital leases, less current portion	180	760
Other liabilities	138	171
Total Long-Term Liabilities	37,564	34,087
Total Liabilities	51,288	54,136
Preferred stock $.001 par value; 567 shares authorized at December 31, 2021 and June 30, 2021, issued and outstanding – none
Common Stock $.0001 par value; 8,500 shares authorized at December 31, 2021 and June 30, 2021, 6,566 issued at December 31, 2021 and June 30, 2021, 6,554 outstanding at December 31, 2021 and June 30, 2021	1	1
Paid-in capital in excess of par value	184,531	185,101
Accumulated deficit	(38,101)	(46,008)
Treasury stock, at cost - 12 shares of common stock at December 31, 2021 and June 30, 2021	(675)	(675)
Total Fonar Corporation’s Stockholders’ Equity	145,756	138,419
Noncontrolling interests	(3,314)	(3,049)
Total Stockholders’ Equity	142,442	135,370
Total Liabilities and Stockholders’ Equity	193,730	189,506
Class A Non Voting Preferred Stock [Member]
Long-Term Liabilities:
Preferred stock $.001 par value; 567 shares authorized at December 31, 2021 and June 30, 2021, issued and outstanding – none
Common Class B [Member]
Long-Term Liabilities:
Common Stock $.0001 par value; 8,500 shares authorized at December 31, 2021 and June 30, 2021, 6,566 issued at December 31, 2021 and June 30, 2021, 6,554 outstanding at December 31, 2021 and June 30, 2021
Common Class C [Member]
Long-Term Liabilities:
Common Stock $.0001 par value; 8,500 shares authorized at December 31, 2021 and June 30, 2021, 6,566 issued at December 31, 2021 and June 30, 2021, 6,554 outstanding at December 31, 2021 and June 30, 2021

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2021	Jun. 30, 2021
Treasury Stock, Shares	12	12
Class A Non Voting Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	453	453
Preferred Stock, Shares Issued	313	313
Preferred Stock, Shares Outstanding	313	313
Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	567	567
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock [Member]
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	8,500	8,500
Common Stock, Shares, Issued	6,566	6,566
Common Stock, Shares, Outstanding	6,554	6,554
Common Class B [Member]
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	227	227
Common Stock, Shares, Issued	146	146
Common Stock, Shares, Outstanding	146	146
Common Class C [Member]
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	567	567
Common Stock, Shares, Issued	383	383
Common Stock, Shares, Outstanding	383	383

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
REVENUES
Patient fee revenue – net of contractual allowances and discounts	$ 7,443	$ 5,238	$ 14,294	$ 10,330
Product sales – net	198	3	346	31
Service and repair fees – net	1,907	1,862	3,844	3,788
Service and repair fees - related parties – net	28	28	55	55
Management and other fees – net	12,108	11,340	24,081	22,554
Management and other fees - related medical practices – net	2,795	2,693	5,589	5,386
Total Revenues – Net	24,479	21,164	48,209	42,144
COSTS AND EXPENSES
Costs related to patient fee revenue	3,323	2,649	6,479	5,169
Costs related to product sales	190	192	299	325
Costs related to service and repair fees	719	608	1,443	1,234
Costs related to service and repair fees - related parties	10	9	21	18
Costs related to management and other fees	6,924	6,237	13,801	11,788
Costs related to management and other fees – related medical practices	1,690	1,522	3,326	2,950
Research and development	370	424	755	824
Selling, general and administrative	4,770	4,541	9,860	10,704
Total Costs and Expenses	17,996	16,182	35,984	33,012
Income From Operations	6,483	4,982	12,225	9,132
Other Income/(Expense)	47		858	(140)
Interest Expense	(23)	(16)	(40)	(38)
Investment Income	60	75	122	187
Income Before Provision for Income Taxes and Noncontrolling Interests	6,567	5,041	13,165	9,141
Provision for Income Taxes	(1,430)	(1,113)	(2,846)	(1,962)
Net Income	5,137	3,928	10,319	7,179
Net Income - Noncontrolling Interests	(1,117)	(817)	(2,412)	(1,560)
Net Income - Attributable to FONAR	$ 4,020	$ 3,111	$ 7,907	$ 5,619
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.58	$ 0.45	$ 1.13	$ 0.82
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.57	$ 0.44	$ 1.11	$ 0.80
Weighted Average Number of Shares Outstanding, Basic	6,554	6,465	6,554	6,456
Weighted Average Diluted Shares Outstanding - Common Stockholders	6,682	6,593	6,682	6,584
Common Stock [Member]
COSTS AND EXPENSES
Net Income - Attributable to FONAR	$ 3,777	$ 2,923	$ 7,430	$ 5,281
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.57	$ 0.44	$ 1.11	$ 0.80
Weighted Average Number of Shares Outstanding, Basic	6,554	6,465	6,554	6,456
Weighted Average Diluted Shares Outstanding - Common Stockholders	6,682	6,593	6,682	6,584
Preferred Class A [Member]
COSTS AND EXPENSES
Net Income - Attributable to FONAR	$ 181	$ 140	$ 355	$ 252
Common Class C [Member]
COSTS AND EXPENSES
Net Income - Attributable to FONAR	$ 62	$ 48	$ 122	$ 86
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.16	$ 0.12	$ 0.32	$ 0.23
Basic and Diluted Income Per Share	$ 0.16	$ 0.12	$ 0.32	$ 0.23
Weighted Average Number of Shares Outstanding, Basic	383	383	383	383
Weighted Average Diluted Shares Outstanding - Common Stockholders	383	383	383	383
Weighted Average Basic and Diluted Shares Outstanding Class C Common	383	383	383	383

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]	Total
Balance - June 30, 2020 at Jun. 30, 2020	$ 1	$ 183,076	$ 56,215	$ 675	$ 55	$ 126,242
Issuance of Common Stock		2,025				2,025
Net income			5,619			5,619
Distributions - Non controlling					(3,570)	(3,570)
Income - Non controlling interests					1,560	1,560
Balance - December 31, 2020 at Dec. 31, 2020	1	185,101	50,596	675	1,955	131,876
Balance - June 30, 2020 at Sep. 30, 2020	1	183,076	53,707	675	642	128,053
Issuance of Common Stock		2,025				2,025
Net income			3,111			3,111
Distributions - Non controlling					(2,130)	(2,130)
Income - Non controlling interests					817	817
Balance - December 31, 2020 at Dec. 31, 2020	1	185,101	50,596	675	1,955	131,876
Balance - June 30, 2020 at Jun. 30, 2021	1	185,101	46,008	675	3,049	135,370
Net income			7,907			7,907
Purchase of Non controlling interest		(570)			24	(546)
Distributions - Non controlling					(2,701)	(2,701)
Income - Non controlling interests					2,412	2,412
Balance - December 31, 2020 at Dec. 31, 2021	1	184,531	38,101	675	3,314	142,442
Balance - June 30, 2020 at Sep. 30, 2021	1	185,101	42,121	675	2,834	139,472
Net income			4,020			4,020
Purchase of Non controlling interest		(570)			24	(546)
Distributions - Non controlling					(1,621)	(1,621)
Income - Non controlling interests					1,117	1,117
Balance - December 31, 2020 at Dec. 31, 2021	$ 1	$ 184,531	$ 38,101	$ 675	$ 3,314	$ 142,442

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash Flows from Operating Activities:
Net income	$ 10,319	$ 7,179
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,358	2,009
Amortization on right-of-use assets	1,644	1,922
Provision for bad debts	822	2,825
Deferred income tax – net	2,437	1,962
Compensatory element of stock issuances		83
Stock issued for costs and expenses		1,941
Abandoned patents		1
Gain on forgiveness of PPP loan	(701)
(Increase) decrease in operating assets, net:
Accounts, medical and management fee receivable(s)	(2,429)	(5,549)
Notes receivable	22	25
Inventories	(436)	(195)
Income tax receivable		671
Prepaid expenses and other current assets	(33)	452
Other assets	102	(1)
Increase (decrease) in operating liabilities, net:
Accounts payable	(1,090)	233
Other current liabilities	(5,395)	(2,748)
Operating lease liabilities	(1,414)	(1,657)
Financing lease liabilities	(101)	24
Customer deposits	(277)	378
Other liabilities	(33)	(3)
Net cash provided by operating activities	5,795	9,552
Cash Flows from Investing Activities:
Purchases of property and equipment	(2,106)	(2,143)
Purchase of noncontrolling interests	(546)
Cost of patents	(38)	(90)
Net cash used in investing activities	(2,690)	(2,233)
Cash Flows from Financing Activities:
Repayment of borrowings and capital lease obligations	(13)	(35)
Proceeds from debt		63
Distributions to noncontrolling interests	(2,701)	(3,570)
Net cash used in financing activities	(2,714)	(3,542)
Net Increase in Cash and Cash Equivalents	391	3,777
Cash and Cash Equivalents - Beginning of Period	44,460	36,802
Cash and Cash Equivalents - End of Period	$ 44,851	$ 40,579

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	6 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
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 45.8 30.0 546,000 70.8 29.2 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, 2021, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022. 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 13, 2021 for the fiscal year ended June 30, 2021. 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. 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 also received some government stimulus funds from the Paycheck Protection Program (“PPP”) and Medicare advances/stimulus payments. During the six months ended December 31, 2021 the PPP loan was forgiven in its entirety. During fiscal 2022, the Company had to deal with the increased strictness in the enforcement of COVID-19 mandates, such as the requirement that employees in healthcare facilities be vaccinated, along with the newer omicrom variant that is more transmissible. As a result, the Company experienced absences due to illness and the loss of unvaccinated employees whose duties required them to be in contact with patients. Due to these conditions, the Company was sometimes unable to keep scanning facilities open for all shifts and as a result there was a slight decrease in scans during the second quarter of fiscal 2022. The Company has been able to navigate through these challenges and avoid any significant disruption of the business and the volume has recently risen back almost to pre- COVID-19 levels. 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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
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 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 judgements 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. BUSINESS COMBINATION When the qualifications for business combination accounting treatment are met, it requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period of final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. 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, 2021 and 2020. 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, 2021 and 2020, diluted EPS for common shareholders includes 128 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: $ 4,020 $ 3,777 $ 62 $ 3,111 $ 2,923 $ 48 Denominator: Weighted average shares outstanding 6,554 6,554 383 6,465 6,465 383 Basic income per common share $ 0.61 $ 0.58 $ 0.16 $ 0.48 $ 0.45 $ 0.12 Diluted Denominator: 6,554 383 6,465 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,682 383 6,593 383 Diluted income per common share $ 0.57 $ 0.16 $ 0.44 $ 0.12 Six months ended Six months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 7,907 $ 7,430 $ 122 $ 5,619 $ 5,281 $ 86 Denominator: Weighted average shares outstanding 6,554 6,554 383 6,456 6,456 383 Basic income per common share $ 1.21 $ 1.13 $ 0.32 $ 0.87 $ 0.82 $ 0.23 Diluted Denominator: 6,554 383 6,456 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,682 383 6,584 383 Diluted income per common share $ 1.11 $ 0.32 $ 0.80 $ 0.23 Recent Accounting Pronouncements FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of December 31, 2021 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 2021 or 2020, 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.

ACCOUNTS RECEIVABLE, MEDICAL RE

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE	6 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE	NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE Receivables, net is comprised of the following at December 31, 2021, and June 30, 2021: Receivables - Non Current - net December 31, 2021 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,477 $ 371 $ 4,106 Accounts receivable - related party $ 60 — $ 60 Medical receivable $ 18,775 $ — $ 18,775 Management and other fees receivable $ 48,943 $ 16,807 $ 32,136 Management and other fees receivable from related medical practices (“PC’s”) $ 12,280 $ 3,987 $ 8,293 June 30, 2021 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,968 $ 442 $ 4,526 Accounts receivable - related party $ 12 — $ 12 Medical receivable $ 17,901 $ — $ 17,901 Management and other fees receivable $ 46,735 $ 15,787 $ 30,948 Management and other fees receivable from related medical practices (“PC’s”) $ 11,998 $ 4,184 $ 7,814 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, 2021 is as follows: Total Facilities 2023 $ 1,020 2024 944 2025 289 2026 37 Total $ 2,290 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 67 66 67 66 Net revenues from management and other fees charged to the related PCs accounted for approximately 11.4 12.7 11.6 12.8 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, 2021 and 2020 are summarized in the following table. Schedule of patient fee revenue For the Three Months Ended December 31, 2021 2020 Commercial Insurance/ Managed Care $ 1,068 $ 966 Medicare/Medicaid 273 206 Workers’ Compensation/Personal Injury 4,344 3,543 Other 1,758 523 Patient Fee Revenue, net of contractual allowances and discounts $ 7,443 $ 5,238 Management and Other Fees Receivable (Continued) For the Six Months Ended December 31, 2021 2020 Commercial Insurance/ Managed Care $ 2,154 $ 1,912 Medicare/Medicaid 522 404 Workers’ Compensation/Personal Injury 8,468 6,930 Other 3,150 1,084 Patient Fee Revenue, net of contractual allowances and discounts $ 14,294 $ 10,330

OPERATING & FINANCING LEASES

OPERATING & FINANCING LEASES	6 Months Ended
	Dec. 31, 2021
Operating Financing Leases
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 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 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 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. 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, 2021 is as follows: Reconcilliation of operating and financing lease payments Twelve Months Ending December 31, Operating Lease Payments Financing Lease Payments 2022 $ 5,282 $ 244 2023 5,439 244 2024 5,247 244 2025 4,954 244 2026 4,410 244 Thereafter 22,755 42 Present value discount (10,814 ) (112 ) Total lease liability $ 37,273 $ 1,150

INVENTORIES

INVENTORIES	6 Months Ended
	Dec. 31, 2021
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 5 - INVENTORIES Inventories included in the accompanying condensed consolidated balance sheets consist of the following: Inventories December 31, 2021 June 30, 2021 Purchased parts, components and supplies $ 1,859 $ 1,393 Work-in-process 240 270 Total Inventories $ 2,099 $ 1,663

CONTRACT ASSETS AND LIABILITIES

CONTRACT ASSETS AND LIABILITIES	6 Months Ended
	Dec. 31, 2021
Regulated Operations [Abstract]
CONTRACT ASSETS AND LIABILITIES	NOTE 6 – CONTRACT ASSETS AND LIABILITIES Information relating to uncompleted contracts about contract assets and (liabilities) is as follows: Costs and Estimated Earnings on Uncompleted Contracts December 31, 2021 June 30, 2021 Costs incurred on uncompleted contracts $ 339 $ 295 Estimated earnings 524 568 Costs and estimated earnings on uncompleted contracts 863 863 Less: Billings to date 878 878 Total costs and estimated earnings on uncompleted contracts $ (15 ) $ (15 )

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS	6 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
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: Other Intagible Assets - Net December 31, 2021 June 30, 2021 Capitalized software development costs $ 7,005 $ 7,005 Patents and copyrights 5,283 5,245 Non-compete 4,150 4,150 Customer relationships 3,900 3,900 Gross Other intangible assets 20,338 20,300 Less: Accumulated amortization 16,483 16,262 Other Intangible Assets $ 3,855 $ 4,038 Amortization of patents and copyrights for the three months ended December 31, 2021 and 2020 amounted to $ 49 44 Amortization of non-compete for the three months ended December 31, 2021 and 2020 amounted to $ 12 0 Amortization of customer relationships for the three months ended December 31, 2021 and 2020 amounted to $ 50 47 Amortization of patents and copyrights for the six months ended December 31, 2021 and 2020 amounted to $ 96 89 Amortization of non-compete for the six months ended December 31, 2021 and 2020 amounted to $ 25 0 Amortization of customer relationships for the six months ended December 31, 2021 and 2020 amounted to $ 100 95

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	6 Months Ended
	Dec. 31, 2021
Payables and Accruals [Abstract]
OTHER CURRENT LIABILITIES	NOTE 8 – OTHER CURRENT LIABILITIES Other current liabilities in the accompanying condensed consolidated balance sheets consist of the following: Other Current Liabilities December 31, 2021 June 30, 2021 Accrued salaries, commissions and payroll taxes $ 2,141 $ 5,407 Litigation accruals — 900 Sales tax payable 543 645 State income taxes payable 188 774 Legal and other professional fees 11 38 Accounting fees 116 127 Self-funded health insurance reserve — 62 Accrued interest and penalty 105 493 Other general & administrative expenses 1,513 716 Other Current Liabilities $ 4,617 $ 9,162

SEGMENT AND RELATED INFORMATION

SEGMENT AND RELATED INFORMATION	6 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
SEGMENT AND RELATED INFORMATION	NOTE 9 - 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, 2021. 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: Summarized Segment Financial Information Medical Management Totals For the three months ended Dec, 31, 2021 Net revenues from external customers $ 2,133 $ 22,346 $ 24,479 Inter-segment net revenues $ 239 $ — $ 239 (Loss) Income from operations $ (27 ) $ 6,510 $ 6,483 Depreciation and amortization $ 68 $ 1,121 $ 1,189 Capital expenditures $ 66 $ 869 $ 935 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 Medical Management Totals For the six months ended Dec, 31, 2021 Net revenues from external customers $ 4,245 $ 43,964 $ 48,209 Inter-segment net revenues $ 475 $ — $ 475 (Loss) Income from operations $ (517 ) $ 12,742 $ 12,225 Depreciation and amortization $ 135 $ 2,223 $ 2,358 Capital expenditures $ 187 $ 1,957 $ 2,144 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

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	6 Months Ended
	Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	NOTE 10 – SUPPLEMENTAL CASH FLOW INFORMATION During the six months ended December 31, 2021 and December 31, 2020, the Company paid $ 265 35 During the six months ended December 31, 2021 and December 31, 2020, the Company paid $ 572 145

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11 – 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, 2021. Other Matters In September 2019, the Company was notified by one of its landlords that it was required to vacate the premises within 180 days under the demolition clause in the lease. The Company believed the lease renewal which was not negotiated in good faith since the renewal was negotiated in February 2018. The Company has recently relocated to a new space but the original lease provided for penalty payments in the event that the Company had not vacated the lease space. The Company had been making normal rent payments throughout the course of the arbitration proceedings. The case was settled for $900 of leasehold holdover charges which was paid in August 2021. 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 has satisfied most of its delinquencies in filing sales tax returns for certain states, for which the Company has transacted business. The Company has recorded tax obligations of approximately $ 543 60 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 $ 150 0 62 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.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 12 - 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, 2021 and 2020, the Company recorded income tax expense of $ 2,846 1,962 409 2,437 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 2017. The Company recorded a deferred tax asset of $ 13,522 238 25,066 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. 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, 2021, 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.

ACQUISITION

ACQUISITION	6 Months Ended
	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
ACQUISITION	NOTE 13 – ACQUISITION On March 29, 2021, the Company completed the acquisition of certain assets of Rockland Management Group, located in West Yonkers. The Company used an incremental borrowing rate of 4% to value the right to use asset in connection with the assumed operating lease obligation. We made a preliminary fair value determination of the acquired assets and assumed liabilities as follows: Fair value assets and assumed liabilities Property and equipment $ 650 Right to use assets 434 Intangible assets 150 Security Deposit 39 Right to use liability (434 ) Goodwill 284 Total purchase consideration $ 1,123 In accordance with ASC 805-10-25-1, Business Combinations – Overall Recognition The net assets acquired and consideration is as follow: Net assets acquired Leasehold Improvements $ 550 Diagnostic Equipment 100 Customer Lists 100 Covenant Not to Compete 50 Security Deposit 39 Closing costs – expensed 3 Goodwill 284 Cash Consideration Paid $ 1,126 The results of operations of Rockland Management Group were diminutive and did not affect the pro forma results of operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Dec. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS The Company has evaluated events that occurred subsequent to December 31, 2021 and through the date the condensed consolidated financial statements were issued.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2021
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.
Revenues	Revenues 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 judgements 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.
BUSINESS COMBINATION	BUSINESS COMBINATION When the qualifications for business combination accounting treatment are met, it requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period of final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations.
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, 2021 and 2020. 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, 2021 and 2020, diluted EPS for common shareholders includes 128 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: $ 4,020 $ 3,777 $ 62 $ 3,111 $ 2,923 $ 48 Denominator: Weighted average shares outstanding 6,554 6,554 383 6,465 6,465 383 Basic income per common share $ 0.61 $ 0.58 $ 0.16 $ 0.48 $ 0.45 $ 0.12 Diluted Denominator: 6,554 383 6,465 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,682 383 6,593 383 Diluted income per common share $ 0.57 $ 0.16 $ 0.44 $ 0.12 Six months ended Six months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 7,907 $ 7,430 $ 122 $ 5,619 $ 5,281 $ 86 Denominator: Weighted average shares outstanding 6,554 6,554 383 6,456 6,456 383 Basic income per common share $ 1.21 $ 1.13 $ 0.32 $ 0.87 $ 0.82 $ 0.23 Diluted Denominator: 6,554 383 6,456 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,682 383 6,584 383 Diluted income per common share $ 1.11 $ 0.32 $ 0.80 $ 0.23
Recent Accounting Pronouncements	Recent Accounting Pronouncements FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of December 31, 2021 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 2021 or 2020, 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.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Dec. 31, 2021
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: $ 4,020 $ 3,777 $ 62 $ 3,111 $ 2,923 $ 48 Denominator: Weighted average shares outstanding 6,554 6,554 383 6,465 6,465 383 Basic income per common share $ 0.61 $ 0.58 $ 0.16 $ 0.48 $ 0.45 $ 0.12 Diluted Denominator: 6,554 383 6,465 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,682 383 6,593 383 Diluted income per common share $ 0.57 $ 0.16 $ 0.44 $ 0.12 Six months ended Six months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 7,907 $ 7,430 $ 122 $ 5,619 $ 5,281 $ 86 Denominator: Weighted average shares outstanding 6,554 6,554 383 6,456 6,456 383 Basic income per common share $ 1.21 $ 1.13 $ 0.32 $ 0.87 $ 0.82 $ 0.23 Diluted Denominator: 6,554 383 6,456 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,682 383 6,584 383 Diluted income per common share $ 1.11 $ 0.32 $ 0.80 $ 0.23

ACCOUNTS RECEIVABLE, MEDICAL _2

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Tables)	6 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Receivables - Non Current - net	Receivables - Non Current - net December 31, 2021 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,477 $ 371 $ 4,106 Accounts receivable - related party $ 60 — $ 60 Medical receivable $ 18,775 $ — $ 18,775 Management and other fees receivable $ 48,943 $ 16,807 $ 32,136 Management and other fees receivable from related medical practices (“PC’s”) $ 12,280 $ 3,987 $ 8,293 June 30, 2021 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,968 $ 442 $ 4,526 Accounts receivable - related party $ 12 — $ 12 Medical receivable $ 17,901 $ — $ 17,901 Management and other fees receivable $ 46,735 $ 15,787 $ 30,948 Management and other fees receivable from related medical practices (“PC’s”) $ 11,998 $ 4,184 $ 7,814
Total Facilities	Total Facilities 2023 $ 1,020 2024 944 2025 289 2026 37 Total $ 2,290
Schedule of patient fee revenue	Schedule of patient fee revenue For the Three Months Ended December 31, 2021 2020 Commercial Insurance/ Managed Care $ 1,068 $ 966 Medicare/Medicaid 273 206 Workers’ Compensation/Personal Injury 4,344 3,543 Other 1,758 523 Patient Fee Revenue, net of contractual allowances and discounts $ 7,443 $ 5,238 Management and Other Fees Receivable (Continued) For the Six Months Ended December 31, 2021 2020 Commercial Insurance/ Managed Care $ 2,154 $ 1,912 Medicare/Medicaid 522 404 Workers’ Compensation/Personal Injury 8,468 6,930 Other 3,150 1,084 Patient Fee Revenue, net of contractual allowances and discounts $ 14,294 $ 10,330

OPERATING & FINANCING LEASES (T

OPERATING & FINANCING LEASES (Tables)	6 Months Ended
	Dec. 31, 2021
Operating Financing Leases
Reconcilliation of operating and financing lease payments	Reconcilliation of operating and financing lease payments Twelve Months Ending December 31, Operating Lease Payments Financing Lease Payments 2022 $ 5,282 $ 244 2023 5,439 244 2024 5,247 244 2025 4,954 244 2026 4,410 244 Thereafter 22,755 42 Present value discount (10,814 ) (112 ) Total lease liability $ 37,273 $ 1,150

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Dec. 31, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories December 31, 2021 June 30, 2021 Purchased parts, components and supplies $ 1,859 $ 1,393 Work-in-process 240 270 Total Inventories $ 2,099 $ 1,663

CONTRACT ASSETS AND LIABILITI_2

CONTRACT ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Dec. 31, 2021
Regulated Operations [Abstract]
Costs and Estimated Earnings on Uncompleted Contracts	Costs and Estimated Earnings on Uncompleted Contracts December 31, 2021 June 30, 2021 Costs incurred on uncompleted contracts $ 339 $ 295 Estimated earnings 524 568 Costs and estimated earnings on uncompleted contracts 863 863 Less: Billings to date 878 878 Total costs and estimated earnings on uncompleted contracts $ (15 ) $ (15 )

OTHER INTANGIBLE ASSETS (Tables

OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intagible Assets - Net	Other Intagible Assets - Net December 31, 2021 June 30, 2021 Capitalized software development costs $ 7,005 $ 7,005 Patents and copyrights 5,283 5,245 Non-compete 4,150 4,150 Customer relationships 3,900 3,900 Gross Other intangible assets 20,338 20,300 Less: Accumulated amortization 16,483 16,262 Other Intangible Assets $ 3,855 $ 4,038

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Dec. 31, 2021
Payables and Accruals [Abstract]
Other Current Liabilities	Other Current Liabilities December 31, 2021 June 30, 2021 Accrued salaries, commissions and payroll taxes $ 2,141 $ 5,407 Litigation accruals — 900 Sales tax payable 543 645 State income taxes payable 188 774 Legal and other professional fees 11 38 Accounting fees 116 127 Self-funded health insurance reserve — 62 Accrued interest and penalty 105 493 Other general & administrative expenses 1,513 716 Other Current Liabilities $ 4,617 $ 9,162

SEGMENT AND RELATED INFORMATI_2

SEGMENT AND RELATED INFORMATION (Tables)	6 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
Summarized Segment Financial Information	Summarized Segment Financial Information Medical Management Totals For the three months ended Dec, 31, 2021 Net revenues from external customers $ 2,133 $ 22,346 $ 24,479 Inter-segment net revenues $ 239 $ — $ 239 (Loss) Income from operations $ (27 ) $ 6,510 $ 6,483 Depreciation and amortization $ 68 $ 1,121 $ 1,189 Capital expenditures $ 66 $ 869 $ 935 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 Medical Management Totals For the six months ended Dec, 31, 2021 Net revenues from external customers $ 4,245 $ 43,964 $ 48,209 Inter-segment net revenues $ 475 $ — $ 475 (Loss) Income from operations $ (517 ) $ 12,742 $ 12,225 Depreciation and amortization $ 135 $ 2,223 $ 2,358 Capital expenditures $ 187 $ 1,957 $ 2,144 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

ACQUISITION (Tables)

ACQUISITION (Tables)	6 Months Ended
	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Fair value assets and assumed liabilities	Fair value assets and assumed liabilities Property and equipment $ 650 Right to use assets 434 Intangible assets 150 Security Deposit 39 Right to use liability (434 ) Goodwill 284 Total purchase consideration $ 1,123
Net assets acquired	Net assets acquired Leasehold Improvements $ 550 Diagnostic Equipment 100 Customer Lists 100 Covenant Not to Compete 50 Security Deposit 39 Closing costs – expensed 3 Goodwill 284 Cash Consideration Paid $ 1,126

DESCRIPTION OF BUSINESS AND B_2

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details Narrative) - USD ($)	Dec. 31, 2021	Jun. 30, 2021	Jul. 01, 2015
Non-controlling interests	$ (3,314,000)	$ (3,049,000)
Direct ownership interest percentage	70.80%
Investor [Member]
Investors ownership interest percentage	29.20%
Noncontrolling Interest [Member]
Non-controlling interests	$ 546,000
H D M [Member]
The ownership interest of Imperial Management Services after reorganization of newly expanded HDM			24.20%
The ownership interest of Health Management Corporation of America after reorganization of newly expanded HDM			45.80%
The ownership interest of the original investors of HDM after reorganization of newly expanded HDM			30.00%

SUMMARY OF SIGNIFICANT ACCOUN_4

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, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Basic Numerator: Net income available to common stockholders	$ 4,020	$ 3,111	$ 7,907	$ 5,619
Basic Denominator: Weighted average shares outstanding	6,554	6,465	6,554	6,456
Basic income per common share	$ 0.61	$ 0.48	$ 1.21	$ 0.87
Total Denominator for diluted earnings per share	6,682	6,593	6,682	6,584
Diluted income per common share	$ 0.57	$ 0.44	$ 1.11	$ 0.80
Common Stock [Member]
Basic Numerator: Net income available to common stockholders	$ 3,777	$ 2,923	$ 7,430	$ 5,281
Basic Denominator: Weighted average shares outstanding	6,554	6,465	6,554	6,456
Basic income per common share	$ 0.58	$ 0.45	$ 1.13	$ 0.82
Diluted Denominator: Weighted average shares outstanding	6,554	6,465	6,554	6,456
Convertible Class C Stock	128	128	128	128
Total Denominator for diluted earnings per share	6,682	6,593	6,682	6,584
Diluted income per common share	$ 0.57	$ 0.44	$ 1.11	$ 0.80
Common Class C [Member]
Basic Numerator: Net income available to common stockholders	$ 62	$ 48	$ 122	$ 86
Basic Denominator: Weighted average shares outstanding	383	383	383	383
Basic income per common share	$ 0.16	$ 0.12	$ 0.32	$ 0.23
Diluted Denominator: Weighted average shares outstanding	383	383	383	383
Convertible Class C Stock
Total Denominator for diluted earnings per share	383	383	383	383
Diluted income per common share	$ 0.16	$ 0.12	$ 0.32	$ 0.23

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Shares included upon conversion of Class C Common to calculate a diluted EPS	128	128	128	128

ACCOUNTS RECEIVABLE, MEDICAL _3

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - Long Term Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 4,106	$ 4,526
Accounts receivable - Related party	60	12
Medical Receivables	18,775	17,901
Management and other fees receivable	32,136	30,948
Management and other fees receivable from related medical practices ("PC's")	8,293	7,814
Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	4,477	4,968
Accounts receivable - Related party	60	12
Medical Receivables	18,775	17,901
Management and other fees receivable	48,943	46,735
Management and other fees receivable from related medical practices ("PC's")	12,280	11,998
Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	371	442
Accounts receivable - Related party
Medical Receivables
Management and other fees receivable	16,807	15,787
Management and other fees receivable from related medical practices ("PC's")	$ 3,987	$ 4,184

ACCOUNTS RECEIVABLE, MEDICAL _4

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - Total Facilities (Details) $ in Thousands	Dec. 31, 2021USD ($)
Receivables [Abstract]
2023	$ 1,020
2024	944
2025	289
2026	37
Total	$ 2,290

ACCOUNTS RECEIVABLE, MEDICAL _5

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Patient fee revenue, net of contractual allowances and discounts	$ 7,443	$ 5,238	$ 14,294	$ 10,330
Commercial Insurance / Managed Care
Patient fee revenue, net of contractual allowances and discounts	1,068	966	2,154	1,912
Medicare/Medicaid
Patient fee revenue, net of contractual allowances and discounts	273	206	522	404
Workers Compensation/Personal Injury
Patient fee revenue, net of contractual allowances and discounts	4,344	3,543	8,468	6,930
Other
Patient fee revenue, net of contractual allowances and discounts	$ 1,758	$ 523	$ 3,150	$ 1,084

ACCOUNTS RECEIVABLE, MEDICAL _6

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Details Narrative)	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Percentage of PC's net revenue derived from no-fault and personal injury protection claim	67.00%	66.00%	67.00%	66.00%
Percentage of consolidated net revenue from management fees charged to related party medical practices	11.40%	12.70%	11.60%	12.80%

OPERATING & FINANCING LEASES -

OPERATING & FINANCING LEASES - Lease Payments (Details) $ in Thousands	Dec. 31, 2021USD ($)
Operating Financing Leases
Operating Lease Payments 2022	$ 5,282
Financing Lease Payments 2022	244
Operating Lease Payments 2023	5,439
Financing Lease Payments 2023	244
Operating Lease Payments 2024	5,247
Financing Lease Payments 2024	244
Operating Lease Payments 2025	4,954
Financing Lease Payments 2025	244
Operating Lease Payments 2026	4,410
Financing Lease Payments 2026	244
Operating Lease Payments Thereafter	22,755
Financing Lease Payments Thereafter	42
Operating Lease Payments Present Value discount	(10,814)
Financing Lease Payments Present Value discount	(112)
Operating Lease Payments Total lease liability	37,273
Financing Lease Payments Total lease liability	$ 1,150

OPERATING & FINANCING LEASES (D

OPERATING & FINANCING LEASES (Details Narrative) $ in Thousands	6 Months Ended
	Dec. 31, 2021USD ($)
Operating Financing Leases
Operating lease payments	$ 33,300

INVENTORIES - Inventories (Deta

INVENTORIES - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Inventory Disclosure [Abstract]
Purchased parts, components and supplies	$ 1,859	$ 1,393
Work-in-process	240	270
Total Inventories	$ 2,099	$ 1,663

CONTRACT ASSETS AND LIABILITI_3

CONTRACT ASSETS AND LIABILITIES - Costs, Earnings, Billings, Uncompleted Contracts - (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Regulated Operations [Abstract]
Costs incurred on uncompleted contracts	$ 339	$ 295
Estimated earnings	524	568
Costs and estimated earnings on uncompleted contracts	863	863
Less: Billings to date	(878)	(878)
Total costs and estimated earnings on uncompleted contracts	$ (15)	$ (15)

OTHER INTANGIBLE ASSETS - Other

OTHER INTANGIBLE ASSETS - Other Intagible Assets Net of Amoritization (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Gross other intangible assets	$ 20,338	$ 20,300
Less: Accumulated amortization	16,483	16,262
Other intangible assets-net	3,855	4,038
Software and Software Development Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Gross other intangible assets	7,005	7,005
Patents and copyrights
Finite-Lived Intangible Assets [Line Items]
Gross other intangible assets	5,283	5,245
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross other intangible assets	4,150	4,150
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross other intangible assets	$ 3,900	$ 3,900

OTHER INTANGIBLE ASSETS (Detail

OTHER INTANGIBLE ASSETS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Patents and copyrights
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 49	$ 44	$ 96	$ 89
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	12	0	25	0
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 50	$ 47	$ 100	$ 95

OTHER CURRENT LIABILITIES - Oth

OTHER CURRENT LIABILITIES - Other Current Liabilities - (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Payables and Accruals [Abstract]
Accrued salaries, commissions and payroll taxes	$ 2,141	$ 5,407
Litigation accruals	0	900
Sales tax payable	543	645
State income taxes payable	188	774
Legal and other professional fees	11	38
Accounting fees	116	127
Self-funded health insurance reserve	0	62
Accrued interest and penalty	105	493
Other general & administrative expenses	1,513	716
Other Current Liabilities	$ 4,617	$ 9,162

SEGMENT AND RELATED INFORMATI_3

SEGMENT AND RELATED INFORMATION - Sumarized Segments - (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Net revenues from external customers	$ 24,479	$ 21,164	$ 48,209	$ 42,144
Inter-segment net revenues	239	219	475	438
(Loss) Income from operations	6,483	4,982	12,225	9,132
Depreciation and amortization	1,189	1,042	2,358	2,010
Capital expenditures	935	1,798	2,144	2,233
Medical Equipment
Net revenues from external customers	2,133	1,893	4,245	3,874
Inter-segment net revenues	239	219	475	438
(Loss) Income from operations	(27)	(8)	(517)	(569)
Depreciation and amortization	68	65	135	132
Capital expenditures	66	70	187	90
Management Of Diagnostic Imaging Centers
Net revenues from external customers	22,346	19,271	43,964	38,270
Inter-segment net revenues
(Loss) Income from operations	6,510	4,990	12,742	9,701
Depreciation and amortization	1,121	977	2,223	1,878
Capital expenditures	$ 869	$ 1,728	$ 1,957	$ 2,143

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 265	$ 35
Income taxes paid	$ 572	$ 145

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Jun. 30, 2021
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	$ 543
Interest and penalties	60
Maximum limit for individual claims under stop-loss umbrella policy for health insurances	150
Self-funded health insurance reserve	$ 0	$ 62

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income tax expense	$ 2,846	$ 1,962
Income tax component - current	409
Income tax component - deferred	2,437
Deferred tax asset	13,522
Deferred tax liability	238
Operating Loss Carryforwards	$ 25,066
Reimbursement of alternative minimum tax credits description	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.

ACQUISITION - Fair value assets

ACQUISITION - Fair value assets and assumed liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021	Mar. 29, 2021
Business Acquisition [Line Items]
Goodwill	$ 4,269	$ 4,269
Rockland Management Group [Member]
Business Acquisition [Line Items]
Property and equipment			$ 650
Right to use assets			434
Intangible assets			150
Security Deposit			39
Right to use liability			(434)
Goodwill			284
Total purchase consideration			$ 1,123

ACQUISITION - Net assets acquir

ACQUISITION - Net assets acquired (Details) - USD ($)	Dec. 31, 2021	Jun. 30, 2021	Mar. 29, 2021
Business Acquisition [Line Items]
Goodwill	$ 4,269,000	$ 4,269,000
Rockland Management Group [Member]
Business Acquisition [Line Items]
Leasehold Improvements			$ 550,000
Diagnostic Equipment			100,000
Customer Lists			100,000
Covenant Not to Compete			50,000
Security Deposit			39,000
Closing costs – expensed			3,000
Goodwill			284,000
Cash Consideration Paid			$ 1,126