FONAR NEWS-112309

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED)
ASSETS	December 31, 2009 (UNAUDITED)	June 30, 2009
Current Assets:
Cash and cash equivalents	$ 1,071	$ 1,226
Marketable securities	30	23
Accounts receivable - net	5,922	5,392
Accounts receivable - related parties - net	119	-
Medical receivables - net	224	374
Management fee receivable - net	3,112	3,274
Management fee receivable - related medical practices - net	1,803	2,196
Costs and estimated earnings in excess of billings on uncompleted contracts	1,257	1,476
Inventories	2,839	3,172
Current portion of advances and notes to related medical practices	173	165
Current portion of notes receivable	85	518
Prepaid expenses and other current assets	340 ----------------	472 ----------------
Total Current Assets	16,975	18,288
	----------------	----------------
Property and equipment - net	2,495	2,892
Advances and notes to related medical practices - net	-	89
Notes receivable - net	142	1,779
Other intangible assets - net	4,896	4,920
Other assets	392	391
	----------------	----------------
Total Assets	$ 24,900	$ 28,359
	===========	===========

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED)
LIABILITIES AND STOCKHOLDERS' DEFICIENCY	December 31, 2009 (UNAUDITED)	June 30, 2009
Current Liabilities:
Current portion of long-term debt and capital leases	$ 314	$ 277
Current portion of long-term debt-related party	84	80
Accounts payable	3,456	3,519
Other current liabilities	8,558	8,460
Unearned revenue on service contracts	5,910	5,526
Unearned revenue on service contracts - related parties	110	-
Customer advances	7,240	9,238
Billings in excess of costs and estimated earnings on uncompleted contracts	3,114	2,026
	----------------	----------------
Total Current Liabilities	28,786	29,126

Long-Term Liabilities: Accounts payable	89	184
Due to related medical practices	645	643
Long-term debt and capital leases, less current portion	682	759
Long-term debt less current portion-related party	117	160
Other liabilities	459 ----------------	428 ----------------
Total Long-Term Liabilities	1,992 ----------------	2,174 ----------------
Total Liabilities	30,778	31,300
	----------------	----------------

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED, except share data)
LIABILITIES AND STOCKHOLDERS' DEFICIENCY (continued)	December 31, 2009 (UNAUDITED)	June 30, 2009
STOCKHOLDERS' DEFICIENCY: Class A non-voting preferred stock $.0001 par value; 1,600,000 authorized, 313,451 issued and outstanding at December 31, 2009 and June 30, 2009	-	-
Preferred stock $.001 par value; 2,000,000 shares authorized, issued and outstanding none	-	-
Common Stock $.0001 par value; 30,000,000 shares authorized at December 31, 2009 and June 30, 2009, 4,927,918 and 4,917,918 issued at December 31, 2009 and June 30, 2009, respectively; 4,916,275 and 4,906,275 outstanding at December 31, 2009 and June 30, 2009, respectively	1	1
Class B Common Stock $ .0001 par value; 800,000 shares authorized, (10 votes per share), 158 issued and outstanding at December 31, 2009 and June 30, 2009	-	-
Class C Common Stock $.0001 par value; 2,000,000 shares authorized, (25 votes per share), 382,513 issued and outstanding at December 31, 2009 and June 30, 2009	-	-
Paid-in capital in excess of par value	172,298	172,280
Accumulated other comprehensive loss	( 15)	(21)
Accumulated deficit	(177,292)	(174,259)
Notes receivable from employee stockholders	( 195)	(267)
Treasury stock, at cost - 11,643 shares of common stock at December 31, 2009 and June 30, 2009	(675)	(675)
	----------------	----------------
Total Stockholders' Deficiency	(5,878)	(2,941)
	----------------	----------------
Total Liabilities and Stockholders' Deficiency	$ 24,900	$ 28,359
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FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (000's OMITTED, except per share data)
	FOR THE THREE MONTHS ENDED DECEMBER 31,
	---------------- 2009 ----------------	---------------- 2008 ----------------
REVENUES Product sales - net	$ 2,961	$ 4,407
Service and repair fees - net	2,629	2,624
Service and repair fees - related parties - net	55	55
Management and other fees - net	1,738	1,735
Management and other fees - related medical practices-net	830	714
License fees and royalties	-	1,755
	----------------	----------------
Total Revenues - Net	8,213 ----------------	11,290 ----------------
COSTS AND EXPENSES Costs related to product sales	2,279	2,824
Costs related to service and repair fees	978	1,027
Costs related to service and repair fees - related parties	20	22
Costs related to management and other fees	1,384	1,074
Costs related to management and other fees - related medical practices	745	698
Research and development	777	928
Selling, general and administrative	3,100	3,471
Provision for bad debts	197	545
	----------------	----------------
Total Costs and Expenses	9,480	10,589
	----------------	----------------
Loss From Operations	( 1,267)	701

Interest Expense	( 90)	( 40)
Interest Expense - Related Party	( 5)	-
Investment Income	66	113
Interest Income - Related Party	3	6
Other Income	1	1
	----------------	----------------
NET (LOSS) INCOME	$ ( 1,292)	$ 781
	===========	===========
Basic Net (Loss) Income Per Common Share	$ (0.26)	$ 0.16
	===========	===========
Diluted Net (Loss) Income Per Common Share	$ (0.26)	$ 0.16
	===========	===========
Weighted Average Basic Shares Outstanding	4,916,275	4,904,275
	===========	===========
Weighted Average Diluted Shares Outstanding	4,916,275	4,904,275
	===========	===========

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (000's OMITTED, except per share data)
	FOR THE SIX MONTHS ENDED DECEMBER 31,
	---------------- 2009 ----------------	---------------- 2008 ----------------
REVENUES Product sales - net	4,524	$ 5,819
Service and repair fees - net	5,386	5,170
Service and repair fees - related parties - net	110	110
Management and other fees - net	3,473	3,782
Management and other fees - related medical practices-net	1,625	1,439
License fees and royalties	585	1,755
	----------------	----------------
Total Revenues - Net	15,703 ----------------	18,075 ----------------
COSTS AND EXPENSES Costs related to product sales	3,936	4,265
Costs related to service and repair fees	1,919	2,038
Costs related to service and repair fees - related parties	39	43
Costs related to management and other fees	2,651	2,277
Costs related to management and other fees - related medical practices	1,505	1,354
Research and development	1,631	1,809
Selling, general and administrative	6,333	6,735
Provision for bad debts	377	700
	----------------	----------------
Total Costs and Expenses	18,391	19,221
	----------------	----------------
Loss From Operations	( 2,688)	( 1,146)

Interest Expense	( 169)	( 119)
Interest Expense - Related Party	( 19)	-
Investment Income	153	145
Interest Income - Related Party	6	12
Other Income	34	2
Minority Interest in Income of Partnerships	-	( 11)
Gain on Sale of Consolidated Subsidiary	-	1,448
Loss on Note Receivable	( 350) ----------------	- -----------------
NET (LOSS) INCOME	$ (3,033)	$ 331
	===========	===========
Basic Net (Loss) Income Per Common Share	$ (0.62)	$ 0.07
	===========	===========
Diluted Net (Loss) Income Per Common Share	$ (0.62)	$ 0.07
	===========	===========
Weighted Average Basic Shares Outstanding	4,912,108	4,904,275
	===========	===========
Weighted Average Diluted Shares Outstanding	4,912,108	4,904,275
	===========	===========

This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.