FONAR NEWS-111511

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED)
ASSETS	September 30, 2011 (UNAUDITED)	June 30, 2011
Current Assets:
Cash and cash equivalents	$ 9,512	$ 9,251
Marketable securities	28	33
Accounts receivable - net	4,701	5,264
Accounts receivable - related party	90	-
Management and other fees receivable - net	3,496	3,309
Management and other fees receivable - related medical practices - net	1,714	1,669
Costs and estimated earnings in excess of billings on uncompleted contracts	557	169
Inventories	3,817	2,400
Current portion of notes receivable - net	114	114
Prepaid expenses and other current assets	425	352
Total Current Assets	24,454	22,561
Property and Equipment - net	3,499	3,769
Notes Receivable	344	359
Other Intangible Assets – Net	4,219	4,318
Other Assets	587	574
Total Assets	$33,103 ================	$31,581 ================

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED)
LIABILITIES AND STOCKHOLDERS' EQUITY	September 30, 2011 (UNAUDITED)	June 30, 2011
Current Liabilities:
Current portion of long-term debt and capital leases	$ 1,818	$ 2,026
Accounts payable	2,074	2,187
Other current liabilities	9,264	8,236
Unearned revenue on service contracts	5,379	5,762
Unearned revenue on service contracts - related party	82	-
Customer advances	3,638	4,846
Billings in excess of costs and estimated earnings on uncompleted contracts	817	4
Income tax payable	75	75
Total Current Liabilities	23,147	23,136
Long-Term Liabilities:
Accounts payable	148	102
Due to related medical practices	230	228
Long-term debt and capital leases, less current portion	1,628	1,746
Other liabilities	498	502
Total Long-Term Liabilities	2,504	2,578
Total Liabilities	25,651	25,714

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED, except share data)
	June 30,
LIABILITIES AND STOCKHOLDERS' EQUITY (continued)	September 30, 2011 (UNAUDITED)	June 30, 2011
STOCKHOLDERS' EQUITY:
Class A non-voting preferred stock $.0001 par value; 453,000 shares authorized at September 30, 2011 and June 30, 2011, 313,451 issued and outstanding at September 30, 2011 and June 30, 2011	-	-
Preferred stock $.001 par value; 567,000 shares authorized at September 30, 2011 and June 30, 2011, issued and outstanding - none	-	-
Common Stock $.0001 par value; 8,500,000 shares authorized at September 30, 2011 and June 30, 2011, 5,689,171 and 5,636,571 issued at September 30, 2011 and June 30, 2011, respectively; 5,677,528 and 5,624,928 outstanding at September 30, 2011 and June 30, 2011, respectively	1	1
Class B Common Stock (10 votes per share) $ .0001 par value; 227,000 shares authorized at September 30, 2011 and June 30, 2011; 158 issued and outstanding at September 30, 2011 and June 30, 2011	-	-
Class C Common Stock (25 votes per share) $.0001 par value; 567,000 shares authorized at September 30, 2011 and June 30, 2011, 382,513 issued and outstanding at September 30, 2011 and June 30, 2011	-	-
Paid-in capital in excess of par value	173,580	173,476
Accumulated other comprehensive loss	(22)	(16)
Accumulated deficit	(172,597)	(174,110)
Notes receivable from employee stockholders	(113)	(115)
Treasury stock, at cost - 11,643 shares of common stock at September 30, 2011 and June 30, 2011	(675)	(675)
Non controlling interests	7,278	7,306
Total Stockholders' Equity (Deficiency)	7,452	5,867
Total Liabilities and Stockholders' Equity	$33,103 ================	$31,581 ================

FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (000's OMITTED, except per share data)
	FOR THE THREE MONTHS ENDED SEPTEMBER 30,
	2011	2010
Product sales - net	$ 1,776	$ 2,660
Service and repair fees - net	2,905	2,689
Service and repair fees - related parties - net	27	55
Management and other fees - net	3,329	2,088
Management and other fees–related medical practices–net	1,571	1,193
Total Revenues - Net	9,608	8,685
COSTS AND EXPENSES Costs related to product sales	1,475	2,506
Costs related to service and repair fees	813	665
Costs related to service and repair fees - related parties	8	14
Costs related to management and other fees	2,185	1,313
Costs related to management and other fees - related medical practices	819	739
Research and development	329	454
Selling, general and administrative	2,043	2,383
Provision for bad debts	175	176
Total Costs and Expenses	7,847	8,250
Income (Loss) from Operations	1,761	435

Interest Expense	(107)	(94)
Interest Expense – Related Parties	-	(4)
Investment Income	62	38
Interest Income - Related Party	-	1
Other Income	56	9
Net Income	1,772	385
Net Income – Non Controlling Interests	(259)	-
Net Income – Controlling Interests	$ 1,513 ================	$ 385 ================
Net Income Available to Common Stockholders	$ 1,409 ================	$ 363 ================
Net Income Available to Class A Non-Voting Preferred Stockholders	$ 78 ================	$ 22 ================
Net Income Available to Class C Common Stockholders	$ 27 ================	$ 7 ================
Basic Net Income Per Common Share Available to Common Stockholders	$ 0.25 ================	$ 0.07 ================
Diluted Net Income Per Common Share Available to Common Stockholders	$ 0.24 ================	$ 0.07 ================
Basic and Diluted Income Per Share - Common C	$ 0.07 ================	$ 0.02 ================
Weighted Average Basic Shares Outstanding	5,668,762 ================	5,012,245 ================
Weighted Average Diluted Shares Outstanding	5,796,266 ================	5,139,749 ================