FONAR (FONR) 10-Q 14 Feb 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Dec. 31, 2023	Feb. 09, 2024
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
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, $.0001 par value
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
Common Class C [Member]
Entity Common Stock, Shares Outstanding		382,513
Class A Preferred Stock [Member]
Entity Common Stock, Shares Outstanding		313,438
Common Stock [Member]
Entity Common Stock, Shares Outstanding		6,328,294

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Current Assets:
Cash and cash equivalents	$ 53,225	$ 51,280
Short-term investments	33	33
Accounts receivable – net	3,881	3,861
Accounts receivable - related party	60
Medical receivable – net	22,548	21,259
Management and other fees receivable – net	39,352	35,888
Management and other fees receivable – related medical practices – net	9,267	9,162
Inventories	2,835	2,570
Prepaid expenses and other current assets	1,341	1,608
Total Current Assets	132,542	125,661
Accounts receivable – long term	376	710
Note receivable – related party	577
Deferred income tax asset	7,758	10,042
Property and equipment – net	20,109	22,146
Right-of-use Asset – operating lease	32,234	33,069
Right-of-use Asset – financing lease	630	729
Goodwill	4,269	4,269
Other intangible assets – net	3,266	3,432
Other assets	501	524
Total Assets	202,262	200,582
Current Liabilities:
Current portion of long-term debt	45	44
Accounts payable	1,335	1,579
Other current liabilities	3,460	5,444
Unearned revenue on service contracts	3,804	3,832
Unearned revenue on service contracts – related party	55
Operating lease liability - current portion	4,658	3,905
Financing lease liability - current portion	222	218
Customer deposits	600	602
Total Current Liabilities	14,179	15,624
Long-Term Liabilities:
Unearned revenue on service contracts	376	760
Deferred income tax liability	395	395
Due to related medical practices	93	93
Operating lease liability – net of current portion	30,299	32,105
Financing lease liability – net of current portion	508	620
Long-term debt, less current portion	92	115
Other liabilities	23	42
Total Long-Term Liabilities	31,786	34,130
Total Liabilities	45,965	49,754
Paid-in capital in excess of par value	180,607	182,613
Accumulated deficit	(16,326)	(24,191)
Treasury stock, at cost - 4 shares of common stock at December 31, 2023 and 11 shares of common stock at June 30, 2023	(395)	(516)
Total Fonar Corporation’s Stockholders’ Equity	163,887	157,907
Non controlling interests	(7,590)	(7,079)
Total Stockholders’ Equity	156,297	150,828
Total Liabilities and Stockholders’ Equity	202,262	200,582
Class A Non Voting Preferred Stock [Member]
Long-Term Liabilities:
Preferred stock value
Preferred Stock [Member]
Long-Term Liabilities:
Preferred stock value
Common Stock [Member]
Long-Term Liabilities:
Common stock value	1	1
Common Class B [Member]
Long-Term Liabilities:
Common stock value
Common Class C [Member]
Long-Term Liabilities:
Common stock value

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Dec. 31, 2023	Jun. 30, 2023
Treasury stock, shares	4,000	11,000
Class A Non Voting Preferred Stock [Member]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	453,000	453,000
Preferred stock, shares issued	313,000	313,000
Preferred stock, shares outstanding	313,000	313,000
Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	567,000	567,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	8,500,000	8,500,000
Common stock, shares issued	6,332,000	6,462,000
Common stock, shares outstanding	6,328,000	6,451,000
Common Class B [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	227,000	227,000
Common stock, shares issued	146	146
Common stock, shares outstanding	146	146
Common Class C [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	567,000	567,000
Common stock, shares issued	383,000	383,000
Common stock, shares outstanding	383,000	383,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
REVENUES
Patient fee revenue – net of contractual allowances and discounts	$ 8,221	$ 7,129	$ 16,896	$ 13,205
Product sales – net	55	170	219	200
Service and repair fees – net	1,778	1,838	3,643	3,658
Service and repair fees - related parties – net	28	28	55	55
Management and other fees – net	12,316	12,092	24,436	24,342
Management and other fees - related medical practices – net	2,988	2,999	5,975	5,987
Total Revenues – Net	25,386	24,256	51,224	47,447
COSTS AND EXPENSES
Costs related to patient fee revenue	4,602	4,023	9,029	7,822
Costs related to product sales	302	214	405	383
Costs related to service and repair fees	784	722	1,633	1,440
Costs related to service and repair fees - related parties	12	11	25	22
Costs related to management and other fees	7,208	6,622	14,231	13,124
Costs related to management and other fees – related medical practices	1,590	1,492	3,109	2,890
Research and development	416	342	883	691
Selling, general and administrative	5,587	6,598	10,453	12,932
Total Costs and Expenses	20,501	20,024	39,768	39,304
Income From Operations	4,885	4,232	11,456	8,143
Other Income (Expense)		(208)	1	(197)
Other Income – Related party	577		577
Interest Expense	(10)	(12)	(58)	(27)
Investment Income	534	263	1,040	414
Income Before Provision for Income Taxes and Non controlling Interests	5,986	4,275	13,016	8,333
Provision for Income Taxes	(1,366)	(1,463)	(3,036)	(2,871)
Net Income	4,620	2,812	9,980	5,462
Net Income – Non controlling Interests	(861)	(580)	(2,115)	(1,183)
Net Income – Attributable to FONAR	$ 3,759	$ 2,232	$ 7,865	$ 4,279

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Net Income (Loss) Attributable to Parent	$ 3,759	$ 2,232	$ 7,865	$ 4,279
Weighted Average Basic Shares Outstanding	6,437	6,527	6,448	6,534
Common Stockholders [Member]
Net Income (Loss) Attributable to Parent	$ 3,525	$ 2,097	$ 7,375	$ 4,020
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.55	$ 0.32	$ 1.14	$ 0.62
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.54	$ 0.32	$ 1.12	$ 0.60
Weighted Average Basic Shares Outstanding	6,437	6,527	6,448	6,534
Weighted Average Diluted Shares Outstanding - Common Stockholders	6,565	6,655	6,576	6,662
Class A Non Voting Preferred Stockholders [Member]
Net Income (Loss) Attributable to Parent	$ 175	$ 101	$ 365	$ 193
Common Class C [Member]
Net Income (Loss) Attributable to Parent	$ 59	$ 34	$ 125	$ 66
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.16	$ 0.09	$ 0.33	$ 0.17
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.16	$ 0.09	$ 0.33	$ 0.17
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 (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Jun. 30, 2022	$ 1	$ 184,531	$ (33,567)	$ (675)	$ (4,054)	$ 146,236
Beginning balance, shares at Jun. 30, 2022	6,554,210			11,643
Net income			4,279			4,279
Purchase of Treasury stock				$ (478)		(478)
Purchase of Treasury stock, shares				29,621
Cancellation of shares		(401)		$ 402		1
Cancellation of shares, shares	(16,062)			(16,062)
Distributions - Non controlling interests					(3,151)	(3,151)
Income - Non controlling interests					1,183	1,183
Ending balance, value at Dec. 31, 2022	$ 1	184,130	(29,288)	$ (751)	(6,022)	148,070
Ending balance, shares at Dec. 31, 2022	6,538,148			25,202
Beginning balance, value at Sep. 30, 2022	$ 1	184,531	(31,520)	$ (797)	(5,085)	147,130
Beginning balance, shares at Sep. 30, 2022	6,554,210			20,445
Net income			2,232			2,232
Purchase of Treasury stock				$ (356)		(356)
Purchase of Treasury stock, shares				20,819
Cancellation of shares		(401)		$ 402		1
Cancellation of shares, shares	(16,062)			(16,062)
Distributions - Non controlling interests					(1,517)	(1,517)
Income - Non controlling interests					580	580
Ending balance, value at Dec. 31, 2022	$ 1	184,130	(29,288)	$ (751)	(6,022)	148,070
Ending balance, shares at Dec. 31, 2022	6,538,148			25,202
Beginning balance, value at Jun. 30, 2023	$ 1	182,613	(24,191)	$ (516)	(7,079)	150,828
Beginning balance, shares at Jun. 30, 2023	6,450,882			11,463
Net income			7,865			7,865
Purchase of Treasury stock				$ (1,885)		(1,885)
Purchase of Treasury stock, shares				115,508
Cancellation of shares		(2,006)		$ 2,006
Cancellation of shares, shares	(122,588)			(122,588)
Distributions - Non controlling interests					(2,626)	(2,626)
Income - Non controlling interests					2,115	2,115
Ending balance, value at Dec. 31, 2023	$ 1	180,607	(16,326)	$ (395)	(7,590)	156,297
Ending balance, shares at Dec. 31, 2023	6,328,294			4,383
Beginning balance, value at Sep. 30, 2023	$ 1	182,613	(20,085)	$ (1,230)	(7,226)	154,073
Beginning balance, shares at Sep. 30, 2023	6,450,882			54,674
Net income			3,759			3,759
Purchase of Treasury stock				$ (1,171)		(1,171)
Purchase of Treasury stock, shares				72,297
Cancellation of shares		(2,006)		$ 2,006
Cancellation of shares, shares	(122,588)			(122,588)
Distributions - Non controlling interests					(1,225)	(1,225)
Income - Non controlling interests					861	861
Ending balance, value at Dec. 31, 2023	$ 1	$ 180,607	$ (16,326)	$ (395)	$ (7,590)	$ 156,297
Ending balance, shares at Dec. 31, 2023	6,328,294			4,383

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash Flows from Operating Activities:
Net income	$ 9,980	$ 5,462
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,415	2,218
Amortization on right-of-use assets	2,146	2,238
Provision for bad debts	355	2,891
Deferred income tax – net	2,284	2,306
Gain on sale of equipment – related party	(577)
(Increase) decrease in operating assets, net:
Accounts, medical and management fee receivable(s)	(4,958)	(3,375)
Notes receivable	50	11
Inventories	(265)	(274)
Prepaid expenses and other current assets	217	60
Other assets	22
Increase (decrease) in operating liabilities, net:
Accounts payable	(244)	(685)
Other current liabilities	(2,341)	(3,228)
Operating lease liabilities	(2,265)	(1,874)
Financing lease liabilities	(108)	(126)
Customer deposits	(3)	271
Other liabilities	(19)	(33)
Net cash provided by operating activities	6,689	5,862
Cash Flows from Investing Activities:
Purchases of property and equipment	(192)	(1,362)
Cost of patents	(20)	(74)
Net cash used in investing activities	(212)	(1,436)
Cash Flows from Financing Activities:
Repayment of borrowings and capital lease obligations	(21)	(15)
Purchase of treasury stock	(1,885)	(478)
Distributions to non controlling interests	(2,626)	(3,151)
Net cash used in financing activities	(4,532)	(3,644)
Net Increase in Cash and Cash Equivalents	1,945	782
Cash and Cash Equivalents - Beginning of Period	51,280	48,723
Cash and Cash Equivalents - End of Period	$ 53,225	$ 49,505

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	6 Months Ended
	Dec. 31, 2023
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 six months ended December 31, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024. 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, 2023 for the fiscal year ended June 30, 2023. 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 navigate the global pandemic and from further losses, additional decreases in scan volume and avoid any significant disruption of the business. The Company must now take into account the severity, duration and recurrence of new strains of the COVID-19 virus which adds a new dimension to the challenges and uncertainty facing our business and the world economy in general. 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, 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. 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 income. 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, 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 six months ended December 31, 2023 and 2022, diluted EPS for common shareholders includes 128 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: $ 3,759 $ 3,525 $ 59 $ 2,232 $ 2,097 $ 34 Denominator: Weighted average shares outstanding 6,437 6,437 383 6,527 6,527 383 Basic income per common share $ 0.58 $ 0.55 $ 0.16 $ 0.34 $ 0.32 $ 0.09 Diluted Denominator: 6,437 383 6,527 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,565 383 6,655 383 Diluted income per common share $ 0.54 $ 0.16 $ 0.32 $ 0.09 Six months ended Six months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 7,865 $ 7,375 $ 125 $ 4,279 $ 4,020 $ 66 Denominator: Weighted average shares outstanding 6,448 6,448 383 6,534 6,534 383 Basic income per common share $ 1.22 $ 1.14 $ 0.33 $ 0.65 $ 0.62 $ 0.17 Diluted Denominator: 6,448 383 6,534 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,576 383 6,662 383 Diluted income per common share $ 1.12 $ 0.33 $ 0.60 $ 0.17 Recent Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, “Income Taxes (740) “Improvements to Income Tax Disclosures”, which requires the annual financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company’s annual reporting beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis, with a retrospective option. We are currently evaluating the effect that adoption of ASU 2023-09 will have on our disclosures. In November 2023, FASB issued ASU 2023-07, “Segment Reporting (Topic 280)”, which is intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The amendments require disclosure of significant segment expenses regularly provided to the chief operating decision maker (CODM) as well as other segment items, extended certain annual disclosures to interim periods, clarify the applicability to single reportable segment entities, permit, more than one measure of profit or loss to be reported under certain conditions, and require disclosure of the title and position of the CODM. The effective date for public entities is beginning after December 15, 2023 and interim periods with fiscal years beginning after December 15, 2024. We expect to adopt the new disclosures as required and are currently evaluating the impact on the related disclosures. In June 2016, FASB issued ASU 2016-13, “Financial Instruments – Credit Loses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to assess credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2022. The Company adopted this standard on July 1, 2023 using the modified retrospective approach and it did not have a material impact of the Company’s financial statements, resulting in no adjustment to prior year earnings. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of December 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	6 Months Ended
	Dec. 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 December 31, 2023, and June 30, 2023: Schedule of financing receivable noncurrent allowance for credit loss December 31, 2023 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,080 $ 199 $ 3,881 Accounts receivable - related party $ 60 — $ 60 Medical receivable $ 22,548 $ — $ 22,548 Management and other fees receivable $ 51,092 $ 11,740 $ 39,352 Management and other fees receivable from related medical practices (“PC’s”) $ 14,480 $ 5,213 $ 9,267 June 30, 2023 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,060 $ 199 $ 3,861 Medical receivable $ 21,259 $ — $ 21,259 Management and other fees receivable $ 48,497 $ 12,609 $ 35,888 Management and other fees receivable from related medical practices (“PC’s”) $ 13,152 $ 3,990 $ 9,162 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 Long term accounts receivable balances at December 31, 2023 and June 30, 2023 amounted to approximately $ 376 710 Schedule of Future revenue 2025 $ 319 2026 57 Total $ 376 Medical Receivables Medical receivables are due under fee-for-service contracts from third party payors, such as hospitals, government sponsored healthcare programs, patient’s legal counsel and directly from patients. Substantially all the revenue relates to patients residing in Florida. The carrying amount of the medical receivable is reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected. The Company determines allowances for contractual adjustments and uncollectible accounts based on specific agings, specific payor collection issues that have been identified and based on payor classifications and historical experience at each site. Management and Other Fees Receivable The Company’s receivables from the related and non-related professional corporations (PC’s) substantially consist of fees outstanding under management agreements. Payment of the outstanding fees is dependent on collection by the PC’s of fees from third party medical reimbursement organizations, principally insurance companies and health management organizations. Payment of the management fee receivables from the PC’s may be impaired by the inability of the PC’s to collect in a timely manner their medical fees from the third-party payors, particularly insurance carriers covering automobile no-fault and workers compensation claims due to longer payment cycles and rigorous informational requirements and certain other disallowed claims. Approximately 66 67 67 68 Net revenues from management and other fees charged to the related PCs accounted for approximately 11.8 12.4 11.7 12.6 Tallahassee Magnetic Resonance Imaging, Inc., Stand Up MRI of Boca Raton, Inc. and Stand Up MRI & Diagnostic Center, Inc. (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, 2023 and 2022 are summarized in the following table. Schedule of patient fee revenue For the Three Months Ended December 31, 2023 2022 Commercial Insurance/ Managed Care $ 1,243 $ 958 Medicare/Medicaid 284 247 Workers’ Compensation/Personal Injury 4,907 4,262 Other 1,787 1,662 Patient Fee Revenue, net of contractual allowances and discounts $ 8,221 $ 7,129 For the Six Months Ended December 31, 2023 2022 Commercial Insurance/ Managed Care $ 2,416 $ 1,869 Medicare/Medicaid 555 484 Workers’ Compensation/Personal Injury 10,044 8,497 Other 3,881 2,355 Patient Fee Revenue, net of contractual allowances and discounts $ 16,896 $ 13,205

OPERATING & FINANCING LEASES

OPERATING & FINANCING LEASES	6 Months Ended
	Dec. 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 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 Topic 842, 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, 2023 is as follows: Lessee operating leases liability maturity Twelve Months Ending Operating Lease Financing Lease 2024 $ 6,319 $ 244 2025 5,672 244 2026 4,902 244 2027 3,677 41 2028 3,426 — Thereafter 20,698 — Present value discount (9,737 ) (43 ) Total lease liability $ 34,957 $ 730

INVENTORIES

INVENTORIES	6 Months Ended
	Dec. 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 December 31, June 30, Purchased parts, components and supplies $ 2,582 $ 2,346 Work-in-process 253 224 Total Inventories $ 2,835 $ 2,570

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS	6 Months Ended
	Dec. 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 December 31, June 30, Capitalized software development costs $ 7,005 $ 7,005 Patents and copyrights 5,472 5,452 Non-compete 4,150 4,150 Customer relationships 3,900 3,900 Gross Other intangible assets 20,527 20,507 Less: Accumulated amortization 17,261 17,075 Other Intangible Assets $ 3,266 $ 3,432 Amortization of patents and copyrights for the three months ended December 31, 2023 and 2022 amounted to $ 43 47 Amortization of customer relationships for the three months ended December 31, 2023 and 2022 amounted to $ 50 50 Amortization of patents and copyrights for the six months ended December 31, 2023 and 2022 amounted to $ 86 101 Amortization of customer relationships for the six months ended December 31, 2023 and 2022 amounted to $ 100 100

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	6 Months Ended
	Dec. 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 December 31, June 30, Accrued salaries, commissions and payroll taxes $ 2,078 $ 4,413 Sales tax payable 222 193 Income taxes payable 196 48 Legal and other professional fees 11 11 Accounting fees 54 100 Self-funded health insurance reserve 86 101 Accrued interest and penalty 4 4 Other general and administrative expenses 809 574 Other Current Liabilities $ 3,460 $ 5,444

SEGMENT AND RELATED INFORMATION

SEGMENT AND RELATED INFORMATION	6 Months Ended
	Dec. 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, 2023. 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: Schedule of summarized segment financial information Medical Management Totals For the three months ended Dec. 31, 2023 Net revenues from external customers $ 1,861 $ 23,525 $ 25,386 Inter-segment net revenues $ 254 $ — $ 254 (Loss) Income from operations $ (993 ) $ 5,878 $ 4,885 Depreciation and amortization $ 60 $ 1,160 $ 1,220 Capital expenditures $ 4 $ 129 $ 133 For the three months ended Dec. 31, 2022 Net revenues from external customers $ 2,035 $ 22,221 $ 24,256 Inter-segment net revenues $ 245 $ — $ 245 (Loss) Income from operations $ (551 ) $ 4,783 $ 4,232 Depreciation and amortization $ 65 $ 1,035 $ 1,100 Capital expenditures $ 50 $ 423 $ 473 Medical Management Totals For the six months ended Dec. 31, 2023 Net revenues from external customers $ 3,917 $ 47,307 $ 51,224 Inter-segment net revenues $ 508 $ — $ 508 (Loss) Income from operations $ (1,731 ) $ 13,187 $ 11,456 Depreciation and amortization $ 121 $ 2,294 $ 2,415 Capital expenditures $ 20 $ 192 $ 212 For the six months ended Dec. 31, 2022 Net revenues from external customers $ 3,913 $ 43,534 $ 47,447 Inter-segment net revenues $ 490 $ — $ 490 (Loss) Income from operations $ (1,353 ) $ 9,496 $ 8,143 Depreciation and amortization $ 137 $ 2,081 $ 2,218 Capital expenditures $ 74 $ 1,362 $ 1,436

RELATED PARTY TRANSACTION

RELATED PARTY TRANSACTION	6 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTION	NOTE 9 – RELATED PARTY TRANSACTION On December 31, 2023, the Company entered into an agreement with Magnetic Resonance Management, LLC (“MRM”) for the sale of a MRI scanner. MRM is owned by the CEO and President of the Company. The sales price of the equipment was $ 577 9 577

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	6 Months Ended
	Dec. 31, 2023
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	NOTE 10 – SUPPLEMENTAL CASH FLOW INFORMATION During the six months ended December 31, 2023 and December 31, 2022, the Company paid $ 58 27 During the six months ended December 31, 2023 and December 31, 2022, the Company paid $ 150 647

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2023
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, 2023. 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 $ 9 116 30 1,885 478 123 16 2,005 402 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 86 101 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, 2023
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, 2023 and 2022, the Company recorded income tax expense of $ 3,036 2,871 1,366 1,462 751 2,285 323 1,043 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 year 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 2018. The Company recorded a deferred tax asset of $ 7,758 395 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, 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% excise tax on share repurchases that occur after December 31, 2022 and introduces a 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 separate state net operating losses that are not expected to be fully utilized. 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	6 Months Ended
	Dec. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 13 – SUBSEQUENT EVENTS The Company has evaluated events that occurred subsequent to December 31, 2023 and through the date the condensed consolidated financial statements were issued. During February 2024, the Company signed an amendment to a property lease for its principal office in Melville, New York. The agreement extends the term of the lease until November 2033.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 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.
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 income.
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, 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 six months ended December 31, 2023 and 2022, diluted EPS for common shareholders includes 128 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: $ 3,759 $ 3,525 $ 59 $ 2,232 $ 2,097 $ 34 Denominator: Weighted average shares outstanding 6,437 6,437 383 6,527 6,527 383 Basic income per common share $ 0.58 $ 0.55 $ 0.16 $ 0.34 $ 0.32 $ 0.09 Diluted Denominator: 6,437 383 6,527 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,565 383 6,655 383 Diluted income per common share $ 0.54 $ 0.16 $ 0.32 $ 0.09 Six months ended Six months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 7,865 $ 7,375 $ 125 $ 4,279 $ 4,020 $ 66 Denominator: Weighted average shares outstanding 6,448 6,448 383 6,534 6,534 383 Basic income per common share $ 1.22 $ 1.14 $ 0.33 $ 0.65 $ 0.62 $ 0.17 Diluted Denominator: 6,448 383 6,534 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,576 383 6,662 383 Diluted income per common share $ 1.12 $ 0.33 $ 0.60 $ 0.17
Recent Accounting Standards	Recent Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, “Income Taxes (740) “Improvements to Income Tax Disclosures”, which requires the annual financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company’s annual reporting beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis, with a retrospective option. We are currently evaluating the effect that adoption of ASU 2023-09 will have on our disclosures. In November 2023, FASB issued ASU 2023-07, “Segment Reporting (Topic 280)”, which is intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The amendments require disclosure of significant segment expenses regularly provided to the chief operating decision maker (CODM) as well as other segment items, extended certain annual disclosures to interim periods, clarify the applicability to single reportable segment entities, permit, more than one measure of profit or loss to be reported under certain conditions, and require disclosure of the title and position of the CODM. The effective date for public entities is beginning after December 15, 2023 and interim periods with fiscal years beginning after December 15, 2024. We expect to adopt the new disclosures as required and are currently evaluating the impact on the related disclosures. In June 2016, FASB issued ASU 2016-13, “Financial Instruments – Credit Loses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to assess credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2022. The Company adopted this standard on July 1, 2023 using the modified retrospective approach and it did not have a material impact of the Company’s financial statements, resulting in no adjustment to prior year earnings. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of December 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)	6 Months Ended
	Dec. 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: $ 3,759 $ 3,525 $ 59 $ 2,232 $ 2,097 $ 34 Denominator: Weighted average shares outstanding 6,437 6,437 383 6,527 6,527 383 Basic income per common share $ 0.58 $ 0.55 $ 0.16 $ 0.34 $ 0.32 $ 0.09 Diluted Denominator: 6,437 383 6,527 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,565 383 6,655 383 Diluted income per common share $ 0.54 $ 0.16 $ 0.32 $ 0.09 Six months ended Six months ended Total Common Stock Class C Common Total Common Stock Class C Common Basic Numerator: $ 7,865 $ 7,375 $ 125 $ 4,279 $ 4,020 $ 66 Denominator: Weighted average shares outstanding 6,448 6,448 383 6,534 6,534 383 Basic income per common share $ 1.22 $ 1.14 $ 0.33 $ 0.65 $ 0.62 $ 0.17 Diluted Denominator: 6,448 383 6,534 383 Convertible Class C Stock 128 — 128 — Total Denominator for diluted earnings per share 6,576 383 6,662 383 Diluted income per common share $ 1.12 $ 0.33 $ 0.60 $ 0.17

ACCOUNTS RECEIVABLE, MEDICAL _2

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Tables)	6 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
Schedule of financing receivable noncurrent allowance for credit loss	Schedule of financing receivable noncurrent allowance for credit loss December 31, 2023 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,080 $ 199 $ 3,881 Accounts receivable - related party $ 60 — $ 60 Medical receivable $ 22,548 $ — $ 22,548 Management and other fees receivable $ 51,092 $ 11,740 $ 39,352 Management and other fees receivable from related medical practices (“PC’s”) $ 14,480 $ 5,213 $ 9,267 June 30, 2023 Gross Receivable Allowance for doubtful accounts Net Accounts receivable $ 4,060 $ 199 $ 3,861 Medical receivable $ 21,259 $ — $ 21,259 Management and other fees receivable $ 48,497 $ 12,609 $ 35,888 Management and other fees receivable from related medical practices (“PC’s”) $ 13,152 $ 3,990 $ 9,162
Schedule of Future revenue	Schedule of Future revenue 2025 $ 319 2026 57 Total $ 376
Schedule of patient fee revenue	Schedule of patient fee revenue For the Three Months Ended December 31, 2023 2022 Commercial Insurance/ Managed Care $ 1,243 $ 958 Medicare/Medicaid 284 247 Workers’ Compensation/Personal Injury 4,907 4,262 Other 1,787 1,662 Patient Fee Revenue, net of contractual allowances and discounts $ 8,221 $ 7,129 For the Six Months Ended December 31, 2023 2022 Commercial Insurance/ Managed Care $ 2,416 $ 1,869 Medicare/Medicaid 555 484 Workers’ Compensation/Personal Injury 10,044 8,497 Other 3,881 2,355 Patient Fee Revenue, net of contractual allowances and discounts $ 16,896 $ 13,205

OPERATING & FINANCING LEASES (T

OPERATING & FINANCING LEASES (Tables)	6 Months Ended
	Dec. 31, 2023
Operating Financing Leases
Lessee operating leases liability maturity	Lessee operating leases liability maturity Twelve Months Ending Operating Lease Financing Lease 2024 $ 6,319 $ 244 2025 5,672 244 2026 4,902 244 2027 3,677 41 2028 3,426 — Thereafter 20,698 — Present value discount (9,737 ) (43 ) Total lease liability $ 34,957 $ 730

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Dec. 31, 2023
Inventory Disclosure [Abstract]
Schedule of inventories	Schedule of inventories December 31, June 30, Purchased parts, components and supplies $ 2,582 $ 2,346 Work-in-process 253 224 Total Inventories $ 2,835 $ 2,570

OTHER INTANGIBLE ASSETS (Tables

OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of other intangible assets	Schedule of other intangible assets December 31, June 30, Capitalized software development costs $ 7,005 $ 7,005 Patents and copyrights 5,472 5,452 Non-compete 4,150 4,150 Customer relationships 3,900 3,900 Gross Other intangible assets 20,527 20,507 Less: Accumulated amortization 17,261 17,075 Other Intangible Assets $ 3,266 $ 3,432

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Dec. 31, 2023
Payables and Accruals [Abstract]
Schedule of other current liabilities	Schedule of other current liabilities December 31, June 30, Accrued salaries, commissions and payroll taxes $ 2,078 $ 4,413 Sales tax payable 222 193 Income taxes payable 196 48 Legal and other professional fees 11 11 Accounting fees 54 100 Self-funded health insurance reserve 86 101 Accrued interest and penalty 4 4 Other general and administrative expenses 809 574 Other Current Liabilities $ 3,460 $ 5,444

SEGMENT AND RELATED INFORMATI_2

SEGMENT AND RELATED INFORMATION (Tables)	6 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
Schedule of summarized segment financial information	Schedule of summarized segment financial information Medical Management Totals For the three months ended Dec. 31, 2023 Net revenues from external customers $ 1,861 $ 23,525 $ 25,386 Inter-segment net revenues $ 254 $ — $ 254 (Loss) Income from operations $ (993 ) $ 5,878 $ 4,885 Depreciation and amortization $ 60 $ 1,160 $ 1,220 Capital expenditures $ 4 $ 129 $ 133 For the three months ended Dec. 31, 2022 Net revenues from external customers $ 2,035 $ 22,221 $ 24,256 Inter-segment net revenues $ 245 $ — $ 245 (Loss) Income from operations $ (551 ) $ 4,783 $ 4,232 Depreciation and amortization $ 65 $ 1,035 $ 1,100 Capital expenditures $ 50 $ 423 $ 473 Medical Management Totals For the six months ended Dec. 31, 2023 Net revenues from external customers $ 3,917 $ 47,307 $ 51,224 Inter-segment net revenues $ 508 $ — $ 508 (Loss) Income from operations $ (1,731 ) $ 13,187 $ 11,456 Depreciation and amortization $ 121 $ 2,294 $ 2,415 Capital expenditures $ 20 $ 192 $ 212 For the six months ended Dec. 31, 2022 Net revenues from external customers $ 3,913 $ 43,534 $ 47,447 Inter-segment net revenues $ 490 $ — $ 490 (Loss) Income from operations $ (1,353 ) $ 9,496 $ 8,143 Depreciation and amortization $ 137 $ 2,081 $ 2,218 Capital expenditures $ 74 $ 1,362 $ 1,436

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
Noncontrolling Interest [Member]
The ownership interest of the original investors of HDM		30%
Investors ownership interest percentage	29.20%
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	$ 546,000
Direct ownership interest percentage	70.80%

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, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Basic Numerator: Net income available to common stockholders	$ 3,759	$ 2,232	$ 7,865	$ 4,279
Basic Denominator: Weighted average shares outstanding	6,437	6,527	6,448	6,534
Basic income per common share	$ 0.58	$ 0.34	$ 1.22	$ 0.65
Common Class C [Member]
Basic Numerator: Net income available to common stockholders	$ 59	$ 34	$ 125	$ 66
Basic Denominator: Weighted average shares outstanding	383	383	383	383
Basic income per common share	$ 0.16	$ 0.09	$ 0.33	$ 0.17
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	$ 0.17
Common Stock [Member]
Basic Numerator: Net income available to common stockholders	$ 3,525	$ 2,097	$ 7,375	$ 4,020
Basic Denominator: Weighted average shares outstanding	6,437	6,527	6,448	6,534
Basic income per common share	$ 0.55	$ 0.32	$ 1.14	$ 0.62
Diluted Denominator: Weighted average shares outstanding	6,437	6,527	6,448	6,534
Convertible Class C Stock	128	128	128	128
Total Denominator for Diluted Earnings Per Share	6,565	6,655	6,576	6,662
Diluted Income per Common Share	$ 0.54	$ 0.32	$ 1.12	$ 0.60

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 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	Dec. 31, 2023	Jun. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 3,881	$ 3,861
Accounts receivable - Related party	60
Medical Receivables	22,548	21,259
Management and other fees receivable	39,352	35,888
Management and other fees receivable from related medical practices ("PC's")	9,267	9,162
Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	4,080	4,060
Accounts receivable - Related party	60
Medical Receivables	22,548	21,259
Management and other fees receivable	51,092	48,497
Management and other fees receivable from related medical practices ("PC's")	14,480	13,152
Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	199	199
Accounts receivable - Related party
Medical Receivables
Management and other fees receivable	11,740	12,609
Management and other fees receivable from related medical practices ("PC's")	$ 5,213	$ 3,990

ACCOUNTS RECEIVABLE, MEDICAL _4

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE - Long Term Accounts Receivable (Details 1) $ in Thousands	Dec. 31, 2023 USD ($)
Receivables [Abstract]
2025	$ 319
2026	57
Total	$ 376

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, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Patient Fee Revenue, net of contractual allowances and discounts	$ 8,221	$ 7,129	$ 16,896	$ 13,205
Commercial Insurance Managed Care [Member]
Disaggregation of Revenue [Line Items]
Patient Fee Revenue, net of contractual allowances and discounts	1,243	958	2,416	1,869
Medicare Medicaid [Member]
Disaggregation of Revenue [Line Items]
Patient Fee Revenue, net of contractual allowances and discounts	284	247	555	484
Workers Compensation Personal Injury [Member]
Disaggregation of Revenue [Line Items]
Patient Fee Revenue, net of contractual allowances and discounts	4,907	4,262	10,044	8,497
Other [Member]
Disaggregation of Revenue [Line Items]
Patient Fee Revenue, net of contractual allowances and discounts	$ 1,787	$ 1,662	$ 3,881	$ 2,355

ACCOUNTS RECEIVABLE, MEDICAL _6

ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Receivables [Abstract]
Long term accounts receivable	$ 376		$ 376		$ 710
Percentage of net revenue	66%	67%	67%	68%
Percentage of consolidated net revenue	11.80%	12.40%	11.70%	12.60%

OPERATING & FINANCING LEASES -

OPERATING & FINANCING LEASES - Lease Payments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Operating Lease Payments [Member]
Lessee, Operating Lease, Liability, to be Paid, Year One	$ 6,319
Lessee, Operating Lease, Liability, to be Paid, Year Two	5,672
Lessee, Operating Lease, Liability, to be Paid, Year Three	4,902
Lessee, Operating Lease, Liability, to be Paid, Year Four	3,677
Lessee, Operating Lease, Liability, to be Paid, Year Five	3,426
Lessee, Operating Lease, Liability, to be Paid, after Year Five	20,698
Present value discount	(9,737)
Operating Lease, Liability	34,957
Financing Lease Payments [Member]
Finance Lease, Liability, to be Paid, Year One	244
Finance Lease, Liability, to be Paid, Year Two	244
Finance Lease, Liability, to be Paid, Year Three	244
Finance Lease, Liability, to be Paid, Year Four	41
Finance Lease, Liability, to be Paid, Year Five
Finance Lease, Liability, to be Paid, after Year Five
Present value discount	(43)
Finance Lease, Liability	$ 730

INVENTORIES - Inventories (Deta

INVENTORIES - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Inventory Disclosure [Abstract]
Purchased parts, components and supplies	$ 2,582	$ 2,346
Work-in-process	253	224
Total Inventories	$ 2,835	$ 2,570

OTHER INTANGIBLE ASSETS - Other

OTHER INTANGIBLE ASSETS - Other intangible assets net of amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Gross other intangible assets	$ 20,527	$ 20,507
Less: Accumulated amortization	17,261	17,075
Other intangible assets-net	3,266	3,432
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	5,472	5,452
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, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Patents and copyrights
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 43	$ 47	$ 86	$ 101
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 50	$ 50	$ 100	$ 100

OTHER CURRENT LIABILITIES - Oth

OTHER CURRENT LIABILITIES - Other Current Liabilities - (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued salaries, commissions and payroll taxes	$ 2,078	$ 4,413
Sales tax payable	222	193
Income taxes payable	196	48
Legal and other professional fees	11	11
Accounting fees	54	100
Self-funded health insurance reserve	86	101
Accrued interest and penalty	4	4
Other general and administrative expenses	809	574
Other Current Liabilities	$ 3,460	$ 5,444

SEGMENT AND RELATED INFORMATI_3

SEGMENT AND RELATED INFORMATION - Summarized Segments - (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Net revenues from external customers	$ 25,386	$ 24,256	$ 51,224	$ 47,447
Inter-segment net revenues	254	245	508	490
(Loss) Income from operations	4,885	4,232	11,456	8,143
Depreciation and amortization	1,220	1,100	2,415	2,218
Capital expenditures	133	473	212	1,436
Medical Equipment [Member]
Net revenues from external customers	1,861	2,035	3,917	3,913
Inter-segment net revenues	254	245	508	490
(Loss) Income from operations	(993)	(551)	(1,731)	(1,353)
Depreciation and amortization	60	65	121	137
Capital expenditures	4	50	20	74
Management Of Diagnostic Imaging Centers [Member]
Net revenues from external customers	23,525	22,221	47,307	43,534
Inter-segment net revenues
(Loss) Income from operations	5,878	4,783	13,187	9,496
Depreciation and amortization	1,160	1,035	2,294	2,081
Capital expenditures	$ 129	$ 423	$ 192	$ 1,362

RELATED PARTY TRANSACTION (Deta

RELATED PARTY TRANSACTION (Details Narrative) - Magnetic Resonance Management [Member] $ in Thousands	6 Months Ended
	Dec. 31, 2023 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sale of price of the equipment	$ 577
Bears interest rate	9%
Gain on sale of equipments	$ 577

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 58	$ 27
Income taxes paid	$ 150	$ 647

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023	Sep. 26, 2022
Commitments and Contingencies Disclosure [Abstract]
Stock purchase plan						$ 9,000
Number of shares repurchased			116	30
Number of shares repurchased, value	$ 1,171	$ 356	$ 1,885	$ 478
Shares cancelled			123	16
Shares cancelled			$ 2,005	$ 402
Liability for individual claims			150
Reserve for self-funded	$ 86		$ 86		$ 101

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,366	$ 1,462	$ 3,036	$ 2,871
Income tax component - current	323		751
Income tax component - deferred	1,043		2,285
Deferred tax asset	7,758		7,758
Deferred tax liability	$ 395		$ 395
Corporate alternative minimum tax percentage			15%