FONAR (FONR) 10-Q 15 May 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Mar. 31, 2023	May 05, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
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 Class B [Member]
Entity Common Stock, Shares Outstanding		146,000
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
Common Stock [Member]
Entity Common Stock, Shares Outstanding		6,538,148

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Current Assets:
Cash and cash equivalents	$ 49,640	$ 48,723
Short term investments	32	32
Accounts receivable – net	3,720	4,336
Accounts receivable - related party	30
Medical receivable – net	20,460	20,109
Management and other fees receivable – net	35,201	33,419
Management and other fees receivable – related medical practices – net	9,088	8,603
Inventories	2,661	2,360
Prepaid expenses and other current assets	1,166	1,104
Total Current Assets	121,998	118,686
Accounts receivable – long term	1,003	1,872
Deferred income tax asset - net	10,911	12,843
Property and equipment – net	22,775	22,282
Right-of-use Asset – operating lease	33,581	34,232
Right-of-use Asset – financing lease	779	928
Goodwill	4,269	4,269
Other intangible assets – net	3,494	3,704
Other assets	526	526
Total Assets	199,336	199,342
Current Liabilities:
Current portion of long-term debt	43	40
Accounts payable	1,719	1,552
Other current liabilities	3,496	6,417
Unearned revenue on service contracts	3,615	4,289
Unearned revenue on service contracts – related party	28
Operating lease liability - current portion	3,981	3,880
Financing lease liability - current portion	217	210
Customer deposits	826	361
Total Current Liabilities	13,925	16,749
Long-Term Liabilities:
Unearned revenue on service contracts	1,015	1,857
Deferred income tax liability	216	216
Due to related medical practices	93	93
Operating lease liability – net of current portion	32,630	33,091
Financing lease liability – net of current portion	657	838
Long-term debt less current portion	126	155
Other liabilities	57	107
Total Long-Term Liabilities	34,794	36,357
Total Liabilities	48,719	53,106
STOCKHOLDERS' EQUITY:
Paid-in capital in excess of par value	184,130	184,531
Accumulated deficit	(25,428)	(33,567)
Treasury stock, at cost - 69 shares of common stock at March 31, 2023 and 12 shares of common stock at June 30, 2022	(1,522)	(675)
Total Fonar Corporation’s Stockholders’ Equity	157,181	150,290
Noncontrolling interests	(6,564)	(4,054)
Total Stockholders' Equity	150,617	146,236
Total Liabilities and Stockholders' Equity	199,336	199,342
Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred Stock Value
Class A Non Voting Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred Stock Value
Common Stock [Member]
STOCKHOLDERS' EQUITY:
Common Stock Value	1	1
Common Class B [Member]
STOCKHOLDERS' EQUITY:
Common Stock Value
Common Class C [Member]
STOCKHOLDERS' EQUITY:
Common Stock Value

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2023	Jun. 30, 2022
Treasury Stock, Shares	69	12
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	6,607	6,566
Common Stock, Shares, Outstanding	6,538	6,554
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
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		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
REVENUES
Patient fee revenue – net of contractual allowances and discounts	$ 8,188	$ 7,641	$ 21,393	$ 21,935
Product sales – net	25	135	225	481
Service and repair fees – net	1,831	1,876	5,489	5,720
Service and repair fees - related parties – net	28	28	83	83
Management and other fees – net	12,375	11,904	36,717	35,985
Management and other fees - related medical practices – net	2,975	2,987	8,962	8,576
Total Revenues – Net	25,422	24,571	72,869	72,780
COSTS AND EXPENSES
Costs related to patient fee revenue	4,056	3,306	11,879	9,785
Costs related to product sales	196	53	580	352
Costs related to service and repair fees	801	747	2,241	2,190
Costs related to service and repair fees - related parties	12	11	34	32
Costs related to management and other fees	7,157	6,696	20,281	20,497
Costs related to management and other fees – related medical practices	1,455	1,698	4,345	5,024
Research and development	435	354	1,126	1,109
Selling, general and administrative	7,143	6,068	20,074	15,928
Total Costs and Expenses	21,255	18,933	60,560	54,917
Income From Operations	4,167	5,638	12,309	17,863
Other (Expense) Income	(6)		(203)	858
Interest Expense	(15)	31	(41)	(9)
Investment Income	356	58	770	180
Income Before Provision for Income Taxes and Noncontrolling Interests	4,502	5,727	12,835	18,892
Provision for Income Taxes	(17)	(2,465)	(2,889)	(5,311)
Net Income	4,485	3,262	9,946	13,581
Net Income - Noncontrolling Interests	(625)	(971)	(1,807)	(3,383)
Net Income – Attributable to FONAR	3,860	2,291	8,139	10,198
STATEMENT OF INCOME
Net Income Available to Common Stockholders	$ 3,627	$ 2,153	$ 7,647	$ 9,583
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.56	$ 0.33	$ 1.18	$ 1.46
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.55	$ 0.32	$ 1.16	$ 1.43
Weighted Average Basic Shares Outstanding – Common Stockholders	6,481	6,554	6,487	6,554
Weighted Average Diluted Shares Outstanding - Common Stockholders	6,609	6,682	6,615	6,682
Preferred Class A [Member]
STATEMENT OF INCOME
Net Income Available to Class A Non-Voting Preferred Stockholders	$ 174	$ 103	$ 367	$ 458
Common Class C [Member]
STATEMENT OF INCOME
Net Income Available to Class C Common Stockholders	$ 59	$ 35	$ 125	$ 157
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.16	$ 0.09	$ 0.33	$ 0.41
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.16	$ 0.09	$ 0.33	$ 0.41
Weighted Average Basic Shares Outstanding – Common Stockholders	383	383	383	383
Weighted Average Diluted Shares Outstanding - Common Stockholders	383	383	383	383

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.56	$ 0.33	$ 1.18	$ 1.46
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.55	$ 0.32	$ 1.16	$ 1.43
Weighted Average Basic Shares Outstanding	6,481	6,554	6,487	6,554
Weighted Average Diluted Shares Outstanding - Common Stockholders	6,609	6,682	6,615	6,682
Common Class C [Member]
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.16	$ 0.09	$ 0.33	$ 0.41
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.16	$ 0.09	$ 0.33	$ 0.41
Weighted Average Basic Shares Outstanding	383	383	383	383
Weighted Average Diluted Shares Outstanding - Common Stockholders	383	383	383	383

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Noncontrolling Interest [Member]	Total
Balance at Jun. 30, 2021	$ 1	$ 185,101	$ (46,008)	$ (675)	$ (3,049)	$ 135,370
Balance			10,198			10,198
Balance					(4,131)	(4,131)
Balance					3,383	3,383
Balance		(570)			24	(546)
Balance at Mar. 31, 2022	1	184,531	(35,810)	(675)	(3,773)	144,274
Balance at Dec. 31, 2021	1	184,531	(38,101)	675	(3,314)	142,442
Balance	0	0	2,291	0	0	2,291
Balance	0	0	0	0	(1,430)	(1,430)
Balance	0	0	0	0	971	971
Balance at Mar. 31, 2022	1	184,531	(35,810)	(675)	(3,773)	144,274
Balance at Jun. 30, 2022	1	184,531	(33,567)	(675)	(4,054)	146,236
Balance			8,139			8,139
Balance				(1,249)		(1,249)
Balance					(4,317)	(4,317)
Balance					1,807	1,807
Balance		(401)		402		1
Balance at Mar. 31, 2023	1	184,130	(25,428)	(1,522)	(6,564)	150,617
Balance at Dec. 31, 2022	1	184,130	(29,288)	(751)	6,022	148,070
Balance	0	0	3,860	0	0	3,860
Balance		0	0	(771)	0	(771)
Balance	0	0	0	0	(1,167)	(1,167)
Balance	0	0	0	0	625	625
Balance at Mar. 31, 2023	$ 1	$ 184,130	$ (25,428)	$ (1,522)	$ (6,564)	$ 150,617

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities:
Net income	$ 9,946	$ 13,581
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,357	3,543
Amortization on right-of-use assets	3,306	2,953
Provision for bad debts	4,441	2,150
Deferred income tax – net	1,931	3,484
Gain on forgiveness of PPP loan		(701)
(Increase) decrease in operating assets, net:
Accounts, medical and management fee receivable(s)	(5,604)	(4,950)
Notes receivable	11	32
Contract assets		(15)
Inventories	(301)	(705)
Prepaid expenses and other current assets	(73)	112
Other assets		132
Increase (decrease) in operating liabilities, net:
Accounts payable	168	(855)
Other current liabilities	(4,409)	(5,480)
Operating lease liabilities	(2,865)	(2,579)
Financing lease liabilities	(175)	(151)
Customer deposits	465	(370)
Contract liabilities		(15)
Other liabilities	(49)	(49)
Net cash provided by operating activities	10,149	10,117
Cash Flows from Investing Activities:
Purchases of property and equipment	(3,553)	(3,807)
Purchase of noncontrolling interests		(546)
Cost of patents	(87)	(60)
Net cash used in investing activities	(3,640)	(4,413)
Cash Flows from Financing Activities:
Repayment of borrowings and capital lease obligations	(26)	(23)
Purchase of treasury stock	(1,249)
Distributions to noncontrolling interests	(4,317)	(4,131)
Net cash used in financing activities	(5,592)	(4,154)
Net Increase in Cash and Cash Equivalents	917	1,550
Cash and Cash Equivalents - Beginning of Period	48,723	44,460
Cash and Cash Equivalents - End of Period	$ 49,640	$ 46,010

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business FONAR Corporation (the "Company" or "FONAR") is a Delaware corporation, which was incorporated on July 17, 1978. FONAR is engaged in the research, development, production and FONAR, through its wholly-owned subsidiary Health Management Corporation of America ("HMCA") provides comprehensive management services to diagnostic imaging facilities. These services provided by the Company include development, administration, leasing of office spaces, 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 nine months ended March 31, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2023. 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 September 28, 2022 for the fiscal year ended June 30, 2022. The global pandemic of COVID-19 has caused turbulence and uncertainty in the United States and international markets and economies which has adversely affected our workforce, liquidity, financial conditions, revenues, profitability and business operations. The Company was able to enact certain decisions to allow the Company to sustain operations 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. 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 to almost pre- COVID-19 levels. Recent legislation was passed to end the national emergency for COVID-19 which the Company believes with positive cash flows, low debt and cash on hand, it will be able to maintain operations to pre COVID-19 levels going forward.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Mar. 31, 2023
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. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. In accordance with ASC Topic 260-10, “Participating Securities and the Two-Class method”, the Company uses 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 nine months ended March 31, 2023 and 2022. 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 nine months ended March 31, 2023 and 2022, diluted EPS for common shareholders includes 128 shares upon conversion of Class C Common. Earnings Per Share Schedule of earning per share Three months ended Three months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 3,860 $ 3,627 $ 59 $ 2,291 $ 2,153 $ 35 Denominator: Weighted average shares outstanding 6,481 6,481 383 6,554 6,554 383 Basic income per common share $ 0.60 $ 0.56 $ 0.16 $ 0.35 $ 0.33 $ 0.09 Diluted Denominator: 6,481 383 6,554 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,609 383 6,682 383 Diluted income per common share $ 0.55 $ 0.16 $ 0.32 $ 0.09 Nine months ended Nine months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 8,139 $ 7,647 $ 125 $ 10,198 $ 9,583 $ 157 Denominator: Weighted average shares outstanding 6,487 6,487 383 6,554 6,554 383 Basic income per common share $ 1.25 $ 1.18 $ 0.33 $ 1.56 $ 1.46 $ 0.41 Diluted Denominator: 6,487 383 6,554 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,615 383 6,682 383 Diluted income per common share $ 1.16 $ 0.33 $ 1.43 $ 0.41 Recent Accounting Standards FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of March 31, 2023 that will become effective in subsequent periods; however, management does not believe that any of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect during 2023 or 2022, and it does not believe that any of those standards 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	9 Months Ended
	Mar. 31, 2023
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 March 31, 2023, and June 30, 2022: Financing receivable noncurrent allowance for Credit loss March 31, 2023 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 3,925 $ 205 $ 3,720 Accounts receivable - related party $ 30 — $ 30 Medical receivable $ 20,460 $ — $ 20,460 Management and other fees receivable $ 55,043 $ 19,842 $ 35,201 Management and other fees receivable from related medical practices ("PC’s") $ 15,002 $ 5,914 $ 9,088 June 30, 2022 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,541 $ 205 $ 4,336 Medical receivable $ 20,109 $ — $ 20,109 Management and other fees receivable $ 50,047 $ 16,628 $ 33,419 Management and other fees receivable from related medical practices ("PC’s") $ 13,290 $ 4,687 $ 8,603 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 three years as of March 31, 2023 is as follows: Schedule of facilities owned or managed 2025 $ 792 2026 216 2027 7 Total $ 1,015 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 67.6 66.6 67.9 66.6 Net revenues from management and other fees charged to the related PCs accounted for approximately 11.7 12.2 12.3 11.8 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 nine months ended March 31, 2023 and 2022 are summarized in the following table. Schedule of patient fee revenue For the Three Months Ended March 31, 2023 2022 Commercial Insurance/ Managed Care $ 1,037 $ 1,095 Medicare/Medicaid 303 287 Workers' Compensation/Personal Injury 5,186 4,624 Other 1,662 1,635 Patient Fee Revenue, net of contractual allowances and discounts $ 8,188 $ 7,641 For the Nine Months Ended March 31, 2023 2022 Commercial Insurance/ Managed Care $ 2,905 $ 3,249 Medicare/Medicaid 788 809 Workers' Compensation/Personal Injury 13,683 13,092 Other 4,017 4,785 Patient Fee Revenue, net of contractual allowances and discounts $ 21,393 $ 21,935

OPERATING & FINANCING LEASES

OPERATING & FINANCING LEASES	9 Months Ended
	Mar. 31, 2023
Operating Financing Leases
OPERATING & FINANCING LEASES	NOTE 4 – OPERATING & FINANCING LEASES In July 2019, the Company adopted ASU 2016-02, Leases (Topic 842). This 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. 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 condensed 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 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 March 31, 2023 is as follows: Lessee operating leases liability maturity Twelve Months Ending Operating Lease Financing Lease Payments 2024 $ 5,613 $ 244 2025 5,661 244 2026 5,304 244 2027 4,520 204 2028 3,642 — Thereafter 21,835 — Present value discount (9,964 ) (62 ) Total lease liability $ 36,611 $ 874

INVENTORIES

INVENTORIES	9 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 5 - INVENTORIES Inventories included in the accompanying condensed consolidated balance sheets consist of the following: Schedule of inventories March 31, June 30, Purchased parts, components and supplies $ 2,456 $ 2,126 Work-in-process 205 234 Total Inventories $ 2,661 $ 2,360

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS	9 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
OTHER INTANGIBLE ASSETS	NOTE 6 – OTHER INTANGIBLE ASSETS Other intangible assets, net of accumulated amortization, in the accompanying condensed consolidated balance sheets consist of the following: Schedule of other intangible assets - net March 31, June 30, Capitalized software development costs $ 7,005 $ 7,005 Patents and copyrights 5,420 5,333 Non-compete 4,150 4,150 Customer relationships 3,900 3,900 Gross Other intangible assets 20,475 20,388 Less: Accumulated amortization 16,981 16,684 Other Intangible Assets - net $ 3,494 $ 3,704 Amortization of patents and copyrights for the three months ended March 31, 2023 and 2022 amounted to $ 46 44 Amortization of non-compete for the three months ended March 31, 2023 and 2022 amounted to $ 0 13 Amortization of customer relationships for the three months ended March 31, 2023 and 2022 amounted to $ 50 50 Amortization of patents and copyrights for the nine months ended March 31, 2023 and 2022 amounted to $ 147 140 Amortization of non-compete for the nine months ended March 31, 2023and 2022 amounted to $ 0 38 Amortization of customer relationships for the nine months ended March 31, 2023 and 2022 amounted to $ 150 150

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	9 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
OTHER CURRENT LIABILITIES	NOTE 7 – OTHER CURRENT LIABILITIES Other current liabilities in the accompanying condensed consolidated balance sheets consist of the following: Schedule of other current liabilities March 31, 2023 June 30, 2022 Accrued salaries, commissions and payroll taxes $ 2,046 $ 4,653 Sales tax payable 210 249 State income taxes payable 200 382 Legal and other professional fees 11 21 Accounting fees 89 120 Self-funded health insurance reserve 35 79 Accrued interest and penalty 3 59 Other general and administrative expenses 902 854 Other Current Liabilities $ 3,496 $ 6,417

SEGMENT AND RELATED INFORMATION

SEGMENT AND RELATED INFORMATION	9 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
SEGMENT AND RELATED INFORMATION	NOTE 8 - 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, 2022. 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 For the three months ended March, 31, 2023 Medical Management Totals Net revenues from external customers $ 1,884 $ 23,538 $ 25,422 Inter-segment net revenues $ 245 $ — $ 245 (Loss) Income from operations $ (1,141 ) $ 5,308 $ 4,167 Depreciation and amortization $ 64 $ 1,075 $ 1,139 Capital expenditures $ 13 $ 2,191 $ 2,204 For the three months ended March 31, 2022 Net revenues from external customers $ 2,039 $ 22,532 $ 24,571 Inter-segment net revenues $ 245 $ — $ 245 (Loss) Income from operations $ (537 ) $ 6,175 $ 5,638 Depreciation and amortization $ 64 $ 1,121 $ 1,185 Capital expenditures $ 43 $ 1,620 $ 1,663 For the nine months ended March 31, 2023 Medical Management Totals Net revenues from external customers $ 5,797 $ 67,072 $ 72,869 Inter-segment net revenues $ 735 $ — $ 735 (Loss) Income from operations $ (2,495 ) $ 14,804 $ 12,309 Depreciation and amortization $ 201 $ 3,156 $ 3,357 Capital expenditures $ 87 $ 3,553 $ 3,640 For the nine months ended March 31, 2022 Net revenues from external customers $ 6,284 $ 66,496 $ 72,780 Inter-segment net revenues $ 720 $ — $ 720 (Loss) Income from operations $ (1,054 ) $ 18,917 $ 17,863 Depreciation and amortization $ 199 $ 3,344 $ 3,543 Capital expenditures $ 230 $ 3,577 $ 3,807

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	9 Months Ended
	Mar. 31, 2023
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	NOTE 9 – SUPPLEMENTAL CASH FLOW INFORMATION During the nine months ended March 31, 2023 and March 31, 2022, the Company paid $ 42 279 During the nine months ended March 31, 2023 and March 31, 2022, the Company paid $ 1,140 1,105

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 10 – 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, 2022. Other Matters On September 13, 2022, the Company adopted a stock repurchase plan. The plan has no expiration date and cannot determine the number of shares which will be repurchased. On September 26, 2022, the Board of Directors has approved up to $ 9 70 1,249 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 35 79 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	9 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 11 - 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 nine months ended March 31, 2023 and 2022, the Company recorded income tax expense of $ 2,889 5,311 958 1,931 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 2019. The Company recorded a deferred tax asset of $ 10,911 216 5,191 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 March 31, 2023, no such changes in ownership have occurred. The Inflation Reduction Act (“IRA”) was enacted on August 16, 2022. The IRA includes provisions imposing a 1 15 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 – SUBSEQUENT EVENTS The Company has evaluated events that occurred subsequent to March 31, 2023 and through the date the condensed consolidated financial statements were issued. During April 2023, the Company repurchased 6 101 During April 2023, the Company amended the revolving credit agreement. The agreement was extended to July 7, 2023. The interest rate on borrowings is at the current prime rate of 8.00

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Mar. 31, 2023
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.
Earnings Per Share	Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. In accordance with ASC Topic 260-10, “Participating Securities and the Two-Class method”, the Company uses 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 nine months ended March 31, 2023 and 2022. 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 nine months ended March 31, 2023 and 2022, diluted EPS for common shareholders includes 128 shares upon conversion of Class C Common. Earnings Per Share Schedule of earning per share Three months ended Three months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 3,860 $ 3,627 $ 59 $ 2,291 $ 2,153 $ 35 Denominator: Weighted average shares outstanding 6,481 6,481 383 6,554 6,554 383 Basic income per common share $ 0.60 $ 0.56 $ 0.16 $ 0.35 $ 0.33 $ 0.09 Diluted Denominator: 6,481 383 6,554 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,609 383 6,682 383 Diluted income per common share $ 0.55 $ 0.16 $ 0.32 $ 0.09 Nine months ended Nine months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 8,139 $ 7,647 $ 125 $ 10,198 $ 9,583 $ 157 Denominator: Weighted average shares outstanding 6,487 6,487 383 6,554 6,554 383 Basic income per common share $ 1.25 $ 1.18 $ 0.33 $ 1.56 $ 1.46 $ 0.41 Diluted Denominator: 6,487 383 6,554 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,615 383 6,682 383 Diluted income per common share $ 1.16 $ 0.33 $ 1.43 $ 0.41
Recent Accounting Standards	Recent Accounting Standards FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of March 31, 2023 that will become effective in subsequent periods; however, management does not believe that any of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect during 2023 or 2022, and it does not believe that any of those standards 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)	9 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of earning per share	Schedule of earning per share Three months ended Three months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 3,860 $ 3,627 $ 59 $ 2,291 $ 2,153 $ 35 Denominator: Weighted average shares outstanding 6,481 6,481 383 6,554 6,554 383 Basic income per common share $ 0.60 $ 0.56 $ 0.16 $ 0.35 $ 0.33 $ 0.09 Diluted Denominator: 6,481 383 6,554 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,609 383 6,682 383 Diluted income per common share $ 0.55 $ 0.16 $ 0.32 $ 0.09 Nine months ended Nine months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 8,139 $ 7,647 $ 125 $ 10,198 $ 9,583 $ 157 Denominator: Weighted average shares outstanding 6,487 6,487 383 6,554 6,554 383 Basic income per common share $ 1.25 $ 1.18 $ 0.33 $ 1.56 $ 1.46 $ 0.41 Diluted Denominator: 6,487 383 6,554 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,615 383 6,682 383 Diluted income per common share $ 1.16 $ 0.33 $ 1.43 $ 0.41

ACCOUNTS RECEIVABLE, MEDICAL _2

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Tables)	9 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Financing receivable noncurrent allowance for Credit loss	Financing receivable noncurrent allowance for Credit loss March 31, 2023 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 3,925 $ 205 $ 3,720 Accounts receivable - related party $ 30 — $ 30 Medical receivable $ 20,460 $ — $ 20,460 Management and other fees receivable $ 55,043 $ 19,842 $ 35,201 Management and other fees receivable from related medical practices ("PC’s") $ 15,002 $ 5,914 $ 9,088 June 30, 2022 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,541 $ 205 $ 4,336 Medical receivable $ 20,109 $ — $ 20,109 Management and other fees receivable $ 50,047 $ 16,628 $ 33,419 Management and other fees receivable from related medical practices ("PC’s") $ 13,290 $ 4,687 $ 8,603
Schedule of facilities owned or managed	Schedule of facilities owned or managed 2025 $ 792 2026 216 2027 7 Total $ 1,015
Schedule of patient fee revenue	Schedule of patient fee revenue For the Three Months Ended March 31, 2023 2022 Commercial Insurance/ Managed Care $ 1,037 $ 1,095 Medicare/Medicaid 303 287 Workers' Compensation/Personal Injury 5,186 4,624 Other 1,662 1,635 Patient Fee Revenue, net of contractual allowances and discounts $ 8,188 $ 7,641 For the Nine Months Ended March 31, 2023 2022 Commercial Insurance/ Managed Care $ 2,905 $ 3,249 Medicare/Medicaid 788 809 Workers' Compensation/Personal Injury 13,683 13,092 Other 4,017 4,785 Patient Fee Revenue, net of contractual allowances and discounts $ 21,393 $ 21,935

OPERATING & FINANCING LEASES (T

OPERATING & FINANCING LEASES (Tables)	9 Months Ended
	Mar. 31, 2023
Operating Financing Leases
Lessee operating leases liability maturity	Lessee operating leases liability maturity Twelve Months Ending Operating Lease Financing Lease Payments 2024 $ 5,613 $ 244 2025 5,661 244 2026 5,304 244 2027 4,520 204 2028 3,642 — Thereafter 21,835 — Present value discount (9,964 ) (62 ) Total lease liability $ 36,611 $ 874

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Schedule of inventories	Schedule of inventories March 31, June 30, Purchased parts, components and supplies $ 2,456 $ 2,126 Work-in-process 205 234 Total Inventories $ 2,661 $ 2,360

OTHER INTANGIBLE ASSETS (Tables

OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of other intangible assets - net	Schedule of other intangible assets - net March 31, June 30, Capitalized software development costs $ 7,005 $ 7,005 Patents and copyrights 5,420 5,333 Non-compete 4,150 4,150 Customer relationships 3,900 3,900 Gross Other intangible assets 20,475 20,388 Less: Accumulated amortization 16,981 16,684 Other Intangible Assets - net $ 3,494 $ 3,704

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Schedule of other current liabilities	Schedule of other current liabilities March 31, 2023 June 30, 2022 Accrued salaries, commissions and payroll taxes $ 2,046 $ 4,653 Sales tax payable 210 249 State income taxes payable 200 382 Legal and other professional fees 11 21 Accounting fees 89 120 Self-funded health insurance reserve 35 79 Accrued interest and penalty 3 59 Other general and administrative expenses 902 854 Other Current Liabilities $ 3,496 $ 6,417

SEGMENT AND RELATED INFORMATI_2

SEGMENT AND RELATED INFORMATION (Tables)	9 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Summarized segment financial information	Summarized segment financial information For the three months ended March, 31, 2023 Medical Management Totals Net revenues from external customers $ 1,884 $ 23,538 $ 25,422 Inter-segment net revenues $ 245 $ — $ 245 (Loss) Income from operations $ (1,141 ) $ 5,308 $ 4,167 Depreciation and amortization $ 64 $ 1,075 $ 1,139 Capital expenditures $ 13 $ 2,191 $ 2,204 For the three months ended March 31, 2022 Net revenues from external customers $ 2,039 $ 22,532 $ 24,571 Inter-segment net revenues $ 245 $ — $ 245 (Loss) Income from operations $ (537 ) $ 6,175 $ 5,638 Depreciation and amortization $ 64 $ 1,121 $ 1,185 Capital expenditures $ 43 $ 1,620 $ 1,663 For the nine months ended March 31, 2023 Medical Management Totals Net revenues from external customers $ 5,797 $ 67,072 $ 72,869 Inter-segment net revenues $ 735 $ — $ 735 (Loss) Income from operations $ (2,495 ) $ 14,804 $ 12,309 Depreciation and amortization $ 201 $ 3,156 $ 3,357 Capital expenditures $ 87 $ 3,553 $ 3,640 For the nine months ended March 31, 2022 Net revenues from external customers $ 6,284 $ 66,496 $ 72,780 Inter-segment net revenues $ 720 $ — $ 720 (Loss) Income from operations $ (1,054 ) $ 18,917 $ 17,863 Depreciation and amortization $ 199 $ 3,344 $ 3,543 Capital expenditures $ 230 $ 3,577 $ 3,807

DESCRIPTION OF BUSINESS AND B_2

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jul. 01, 2015
Controlling Interest [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%
Direct purchase of Noncontrolling Interests	$ 546
Direct ownership interest percentage	70.80%
Noncontrolling Interest [Member]
The ownership interest of the original investors of HDM		30%
Investors ownership interest percentage	29.20%

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		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Basic Numerator: Net income available to common stockholders	$ 3,860	$ 2,291	$ 8,139	$ 10,198
Basic Denominator: Weighted average shares outstanding	6,481	6,554	6,487	6,554
Basic income per common share	$ 0.60	$ 0.35	$ 1.25	$ 1.56
Diluted Income per Common Share	$ 0.55	$ 0.32	$ 1.16	$ 1.43
Common Class C [Member]
Basic Numerator: Net income available to common stockholders	$ 59	$ 35	$ 125	$ 157
Basic Denominator: Weighted average shares outstanding	383	383	383	383
Basic income per common share	$ 0.16	$ 0.09	$ 0.33	$ 0.41
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	$ 0.09	$ 0.33	$ 0.41
Common Stock [Member]
Basic Numerator: Net income available to common stockholders	$ 3,627	$ 2,153	$ 7,647	$ 9,583
Basic Denominator: Weighted average shares outstanding	6,481	6,554	6,487	6,554
Basic income per common share	$ 0.56	$ 0.33	$ 1.18	$ 1.46
Diluted Denominator: Weighted average shares outstanding	6,481	6,554	6,487	6,554
Convertible Class C Stock	128	128	128	128
Total Denominator for Diluted Earnings Per Share	6,609	6,682	6,615	6,682
Diluted Income per Common Share	$ 0.55	$ 0.32	$ 1.16	$ 1.43

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Accounting Policies [Abstract]
Shares included upon conversion of Class C Common	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	Mar. 31, 2023	Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 3,720	$ 4,336
Accounts receivable - Related party	30
Medical Receivables	20,460	20,109
Management and other fees receivable	35,201	33,419
Management and other fees receivable from related medical practices ("PC's")	9,088	8,603
Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	3,925	4,541
Accounts receivable - Related party	30
Medical Receivables	20,460	20,109
Management and other fees receivable	55,043	50,047
Management and other fees receivable from related medical practices ("PC's")	15,002	13,290
Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	205	205
Accounts receivable - Related party
Medical Receivables
Management and other fees receivable	19,842	16,628
Management and other fees receivable from related medical practices ("PC's")	$ 5,914	$ 4,687

ACCOUNTS RECEIVABLE, MEDICAL _4

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - Long Term Accounts Receivable (Details 1) $ in Thousands	Mar. 31, 2023 USD ($)
Receivables [Abstract]
2025	$ 792
2026	216
2027	7
Total	$ 1,015

ACCOUNTS RECEIVABLE, MEDICAL _5

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Patient fee revenue, net of contractual allowances and discounts	$ 8,188	$ 7,641	$ 21,393	$ 21,935
Commercial Insurance / Managed Care
Disaggregation of Revenue [Line Items]
Patient fee revenue, net of contractual allowances and discounts	1,037	1,095	2,905	3,249
Medicare/Medicaid
Disaggregation of Revenue [Line Items]
Patient fee revenue, net of contractual allowances and discounts	303	287	788	809
Workers Compensation/Personal Injury
Disaggregation of Revenue [Line Items]
Patient fee revenue, net of contractual allowances and discounts	5,186	4,624	13,683	13,092
Other
Disaggregation of Revenue [Line Items]
Patient fee revenue, net of contractual allowances and discounts	$ 1,662	$ 1,635	$ 4,017	$ 4,785

ACCOUNTS RECEIVABLE, MEDICAL _6

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Details Narrative)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Receivables [Abstract]
Percentage of net revenue derived from no-fault and personal injury protection claim	67.60%	66.60%	67.90%	66.60%
Percentage of consolidated net revenue from management fees charged to related party medical practices	11.70%	12.20%	12.30%	11.80%

OPERATING & FINANCING LEASES -

OPERATING & FINANCING LEASES - Lease Payments (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Operating Lease Payments [Member]
2024	$ 5,613
2025	5,661
2026	5,304
2027	4,520
2028	3,642
Thereafter	21,835
Present value discount	(9,964)
Total lease liability	36,611
Financing Lease Payments [Member]
2024	244
2025	244
2026	244
2027	204
2028
Thereafter
Present value discount	(62)
Total lease liability	$ 874

INVENTORIES - Inventories (Deta

INVENTORIES - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Inventory Disclosure [Abstract]
Purchased parts, components and supplies	$ 2,456	$ 2,126
Work-in-process	205	234
Total Inventories	$ 2,661	$ 2,360

OTHER INTANGIBLE ASSETS - Other

OTHER INTANGIBLE ASSETS - Other Intagible Assets Net of Amoritization (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Gross other intangible assets	$ 20,475	$ 20,388
Less: Accumulated amortization	16,981	16,684
Other intangible assets-net	3,494	3,704
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	5,420	5,333
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		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Patents and copyrights
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 46	$ 44	$ 147	$ 140
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	0	13	0	38
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 50	$ 50	$ 150	$ 150

OTHER CURRENT LIABILITIES - Oth

OTHER CURRENT LIABILITIES - Other Current Liabilities - (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Payables and Accruals [Abstract]
Accrued salaries, commissions and payroll taxes	$ 2,046	$ 4,653
Sales tax payable	210	249
State income taxes payable	200	382
Legal and other professional fees	11	21
Accounting fees	89	120
Self-funded health insurance reserve	35	79
Accrued interest and penalty	3	59
Other general and administrative expenses	902	854
Other Current Liabilities	$ 3,496	$ 6,417

SEGMENT AND RELATED INFORMATI_3

SEGMENT AND RELATED INFORMATION - Sumarized Segments - (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Net revenues from external customers	$ 25,422	$ 24,571	$ 72,869	$ 72,780
Inter-segment net revenues	245	245	735	720
(Loss) Income from operations	4,167	5,638	12,309	17,863
Depreciation and amortization	1,139	1,185	3,357	3,543
Capital expenditures	2,204	1,663	3,640	3,807
Medical Equipment
Net revenues from external customers	1,884	2,039	5,797	6,284
Inter-segment net revenues	245	245	735	720
(Loss) Income from operations	(1,141)	(537)	(2,495)	(1,054)
Depreciation and amortization	64	64	201	199
Capital expenditures	13	43	87	230
Management Of Diagnostic Imaging Centers
Net revenues from external customers	23,538	22,532	67,072	66,496
Inter-segment net revenues
(Loss) Income from operations	5,308	6,175	14,804	18,917
Depreciation and amortization	1,075	1,121	3,156	3,344
Capital expenditures	$ 2,191	$ 1,620	$ 3,553	$ 3,577

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 42	$ 279
Income taxes paid	$ 1,140	$ 1,105

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2023	Sep. 26, 2022	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Stock purchase plan			$ 9,000
Number of shares repurchased		70
Number of shares repurchased, value	$ 771	$ 1,249
Maximum limit for individual claims under stop-loss umbrella policy for health insurances	150	150
Self-funded health insurance reserve	35	35		$ 79
Self Funded Health Insurance [Member]
Disaggregation of Revenue [Line Items]
Self-funded health insurance reserve	$ 35	$ 35		$ 79

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 2,889	$ 5,311
Income tax component - current	958
Income tax component - deferred	1,931
Deferred tax asset	10,911
Deferred tax liability	216
Operating Loss Carryforwards	$ 5,191
Excise tax	1%
Corporate minimum tax	15%

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] shares in Thousands, $ in Thousands	1 Months Ended
	Apr. 30, 2023 USD ($) shares
Subsequent Event [Line Items]
Stock repurchase plan, shares | shares	6
Stock repurchase plan | $	$ 101
Interest rate	8%