SECURITIES AND EXCHANGE COMMISSION FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Act of 1934 Date of Report (Date of earliest event reported): August 20, 1998 FONAR CORPORATION __________________________________________________________________ (Exact name of registrant as specified in its charter) Delaware 0-10248 11-2464137 -------- ------- ---------- (State or other (Commission File (I.R.S. Employer jurisdiction of Number) Identification No.) incorporation) 110 Marcus Drive Melville, New York 11747 (516) 694-2929 __________________________________________________________________ (Address, including zip code, and telephone number of registrant's principal executive offices) Item 2. Acquisition or Disposition of Assets Acquisition of New Business Effective August 20, 1998, Fonar Corporation's (the "Company" or "Fonar") wholly-owned subsidiary, Health Management Corporation of America (formerly known as U.S. Health Management Corporation and hereinafter referred to as "HMCA") acquired 100% of the issued and outstanding stock of Dynamic Health Care Management, Inc. ("Dynamic"), a management services organization (MSO) engaged in the business of managing three multi-specialty practices located in Nassau and Suffolk Counties, New York (the "Practices"). Dynamic provides the Practices with management services, billing and collection services, office space, equipment, repair and maintenance service and clerical and other non-medical personnel. The office locations for the Practices are located in Hempstead and Bellmore in Nassau County and Deer Park in Suffolk County, New York. Consideration Pursuant to the terms of the Stock Purchase Agreement, the former shareholders of Dynamic will receive, in the aggregate, $11,576,230.92 payable in a combination of cash, promissory notes and HMCA stock. Health Management Corporation of America's Reasons for Acquisitions HMCA was formed in March 1997 as a subsidiary by the Company in order to enable the Company to expand into the physician practice management (PPM) business. Since its formation, HMCA has successfully consummated five acquisitions. Item 7. Financial Statements and Exhibits Financial Statements The financial statement required by this item will be filed no later than November 3, 1998. Exhibits 2. Stock Purchase Agreement dated August 20, 1998. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FONAR CORPORATION (Registrant) By: /s/ Timothy Damadian Timothy Damadian Vice President Dated: September 3, 1998