FONAR NEWS-112309

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.

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FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED)
ASSETS	September 30, 2009 (UNAUDITED)	June 30, 2009
Current Assets:
Cash and cash equivalents	$ 1,372	$ 1,226
Marketable securities	27	23
Accounts receivable - net	5,156	5,392
Accounts receivable - related parties - net	179	-
Medical receivables - net	316	374
Management fee receivable - net	3,304	3,274
Management fee receivable - related medical practices - net	2,020	2,196
Costs and estimated earnings in excess of billings on uncompleted contracts	1,212	1,476
Inventories	3,452	3,172
Current portion of advances and notes to related medical practices	166	165
Current portion of notes receivable	1,664	518
Prepaid expenses and other current assets	345 ----------------	472 ----------------
Total Current Assets	19,213	18,288
	----------------	----------------
Property and equipment - net	2,696	2,892
Advances and notes to related medical practices - net	45	89
Notes receivable - net	156	1,779
Other intangible assets - net	4,951	4,920
Other assets	391	391
	----------------	----------------
Total Assets	$ 27,452	$ 28,359
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FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED)
LIABILITIES AND STOCKHOLDERS' DEFICIENCY	September 30, 2009 (UNAUDITED)	June 30, 2009
Current Liabilities:
Current portion of long-term debt and capital leases	$ 267	$ 277
Current portion of long-term debt-related party	82	80
Accounts payable	3,816	3,519
Other current liabilities	8,429	8,460
Unearned revenue on service contracts	5,423	5,526
Unearned revenue on service contracts - related parties	165	-
Customer advances	9,264	9,238
Billings in excess of costs and estimated earnings on uncompleted contracts	2,536	2,026
	----------------	----------------
Total Current Liabilities	29,982	29,126

Long-Term Liabilities: Accounts payable	156	184
Due to related medical practices	658	643
Long-term debt and capital leases, less current portion	731	759
Long-term debt less current portion-related party	139	160
Other liabilities	379 ----------------	364 ----------------
Total Long-Term Liabilities	2,063 ----------------	2,110 ----------------
Total Liabilities	32,045	31,236
Minority interest	64	64
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FONAR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (000's OMITTED)
LIABILITIES AND STOCKHOLDERS' DEFICIENCY (continued)	September 30, 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 September 30, 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 September 30, 2009 and June 30, 2009, 4,927,918 and 4,917,918 issued at September 30, 2009 and June 30, 2009, respectively; 4,916,275 and 4,906,275 outstanding at September 30, 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 September 30, 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 September 30, 2009 and June 30, 2009	-	-
Paid-in capital in excess of par value	172,299	172,280
Accumulated other comprehensive loss	(17)	(21)
Accumulated deficit	(176,000)	(174,259)
Notes receivable from employee stockholders	(265)	(267)
Treasury stock, at cost - 11,643 shares of common stock at September 30, 2009 and June 30, 2009	(675)	(675)
	----------------	----------------
Total Stockholders' Deficiency	(4,657)	(2,941)
	----------------	----------------
Total Liabilities and Stockholders' Deficiency	$ 27,452	$ 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 SEPTEMBER 30,
	---------------- 2009 ----------------	---------------- 2008 ----------------
REVENUES Product sales - net	$ 1,563	$ 1,413
Service and repair fees - net	2,757	2,545
Service and repair fees - related parties - net	55	55
Management and other fees - net	1,736	2,047
Management and other fees - related medical practices-net	795	724
License fees and royalties	585	-
	----------------	----------------
Total Revenues - Net	7,491 ----------------	6,784 ----------------
COSTS AND EXPENSES Costs related to product sales	1,657	1,442
Costs related to service and repair fees	941	1,010
Costs related to service and repair fees - related parties	19	22
Costs related to management and other fees	1,268	1,203
Costs related to management and other fees - related medical practices	761	656
Research and development	854	880
Selling, general and administrative	3,233	3,265
Provision for bad debts	180	154
	----------------	----------------
Total Costs and Expenses	8,913	8,632
	----------------	----------------
Loss From Operations	(1,422)	(1,848)

Interest Expense	(79)	(79)
Interest Expense - Related Party	(14)	-
Investment Income	87	33
Interest Income - Related Party	4	6
Other Income	33	1
Minority Interest in Income of Partnerships	-	(11)
Gain on Sale of Consolidated Subsidiary	1	1,448
Loss on Note Receivable	(350)	-
	----------------	----------------
NET LOSS	$ (1,741)	$ (450)
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Basic and Diluted Loss Per Common Share	$(0.35)	$(0.09)
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Weighted Average Number of Common Shares Outstanding	4,907,942	4,904,275
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