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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED
CONTRACTS</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Information relating to uncompleted contracts
as of June 30, 2020 and 2019 is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">As of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 5.4pt"><font style="font-size: 10pt">Costs incurred on uncompleted contracts</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">448,437</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">448,437</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Estimated earnings</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">309,248</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,088,675</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">757,685</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,537,112</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Less: Billings to date</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">604,852</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,012,002</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">152,833</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">525,110</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 5 – INVENTORIES</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories included in the accompanying consolidated
balance sheets consist of:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">As of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 5.4pt"><font style="font-size: 10pt">Purchased parts, components and supplies</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">1,544,036</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">1,639,777</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Work-in-process</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">104,734</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">158,389</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">1,648,770</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,798,166</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 6 - PROPERTY AND EQUIPMENT</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment, at cost, less accumulated
depreciation and amortization, at June 30, 2020 and 2019, is comprised of: </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">As of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 5.4pt"><font style="font-size: 10pt">Diagnostic equipment</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">28,434,063</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">26,090,218</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Research, development and demonstration equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5,901,961</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,605,906</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Machinery and equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,069,055</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,069,055</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Furniture and fixtures</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,291,666</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,122,102</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,736,825</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">8,023,292</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Building</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">939,614</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">939,614</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,373,184</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">43,850,187</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Less: Accumulated depreciation and amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">30,009,150</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">26,864,570</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">21,364,034</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">16,985,617</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation and amortization of property and
equipment for the years ended June 30, 2020 and 2019 was $3,144,580 and $2,862,117, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 9 – CONTROLLING AND NONCONTROLLING
INTERESTS</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 13, 2013 the Company entered into
an agreement with outside investors to acquire a 50.5% controlling interest in a newly formed limited liability company, Health
Diagnostics Management LLC (HDM). According to the February 13, 2013 LLC operating agreement of HDM there are two classes of members;
Class A members and one Class B member. The Class A members has an ownership interest of 49.5% of HDM. The Class B member (HMCA)
has an ownership of 50.5% of HDM. On all matters on which members may vote every member is entitled to cast the percentage of votes
equal to their percentage of ownership interest. Profits and losses on all items of income, gain or loss, deductions or other allocations
of the Company will be allocated among the members in the same proportions as their membership interests in the Company bear to
all the Class A and Class B membership interests of the Company in the aggregate outstanding. All of the depreciation and amortization
of the assets of the Company will be allocated solely to the Class A members, unless and until their interests have been redeemed
by the Company in full pursuant to the provisions of the operating agreement. The Company contributed $20,200,000 to HDM and the
group of outside investors contributed $19,800,000 for its non-controlling membership interest.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 5, 2013 HDM purchased from Health
Diagnostics, LLC (“HD”) and certain of its subsidiaries, a business managing twelve (12) Stand-Up MRI Centers and two
(2) other scanning centers located in the States of New York and Florida for a total purchase price (including consideration of
$1.5 million to outside investors) aggregating $35.9 million. Concurrently with the acquisition, HDM entered into several consulting
and non-competition agreements for a consideration of $4.1 million. The acquisition was accounted for using the purchase method
in accordance with ASC 805, “Business Combinations”. The Company recognized and measured goodwill as of the acquisition
date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 8, 2015, the Company purchased 20%
of the Class A members ownership interest at a cost of $4,971,094. The Company has a 60.4% ownership interest in HDM after this
transaction.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Amount of each class of HDM members’ equity as of June 30,
2020 and 2019</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">Class A Members</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">Class B Member</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">Class A Members</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">Class B Member</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 44%; padding-left: 4.35pt; text-indent: -4.35pt"><font style="font-size: 10pt">Opening Members’ Equity</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">2,155,725</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">36,543,786</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">3,559,182</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">31,775,922</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 4.35pt; text-indent: -4.35pt"><font style="font-size: 10pt">Share of Net Income</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,464,528</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,291,633</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5,196,543</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20,167,864</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 4.35pt; text-indent: -4.35pt"><font style="font-size: 10pt">Distributions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">(5,565,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">(12,985,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">(6,600,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(15,400,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 4.35pt; text-indent: -4.35pt"><font style="font-size: 10pt">Ending Members’ Equity</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">55,253</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">39,850,419</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">2,155,725</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">36,543,786</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 12 - OTHER CURRENT LIABILITIES</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Included in other current liabilities are the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Accrued salaries, commissions and payroll taxes</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">4,491,941</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">3,897,833</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Litigation accruals</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">442,802</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">145,029</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Sales tax payable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,353,200</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,671,488</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Legal and other professional fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">112,867</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">125,567</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Accounting fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">120,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">105,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Self-funded health insurance reserve</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">86,504</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">67,825</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Accrued interest and penalty</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">877,787</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,054,134</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Other</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 9pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 9pt; text-align: right"><font style="font-size: 10pt">699,997</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 9pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">510,540</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">8,185,098</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">7,577,416</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 15 – RELATED PARTY TRANSACTIONS</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The CEO and President of the Company is a minority
owner of a billing company, which performs billing and collection services with respect to No-Fault and Workers’ Compensation
claims of the Company’s clients. The monthly fee charged to the Company is $85,000. On June 1, 2017, the Company also entered
into a one year renewable agreement to provide IT services to the billing company for a monthly fee of $23,884. The agreement was
renewed on June 1, 2020 for another year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Bensonhurst MRI Limited Partnership, in which
the CEO and President of the Company holds an interest, is party to an agreement with the Company for the service and maintenance
of its Upright MRI Scanner for a price of $110,000 per annum.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Principles of Consolidation</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include
the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships. The operating activities of subsidiaries
are included in the accompanying consolidated statements from the date of acquisition. All significant intercompany accounts and
transactions have been eliminated in consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Use of Estimates</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of the consolidated financial
statements in conformity with accounting principles generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
in the consolidated financial statements and accompanying notes. The most significant estimates relate to receivable allowances,
intangible assets, income taxes and related tax asset valuation allowances, useful lives of property and equipment, contingencies,
revenue recognition and the assessment of litigation. In addition, healthcare industry reforms and reimbursement practices will
continue to impact the Company's operations and the determination of contractual and other allowance estimates. Actual results
could differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories consist of purchased parts, components
and supplies, as well as work-in-process, and are stated at the lower of cost, determined on the first-in, first-out method, or
market.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and Equipment</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment procured in the normal
course of business is stated at cost. Property and equipment purchased in connection with an acquisition is stated at its estimated
fair value, generally based on an appraisal. Property and equipment is being depreciated for financial accounting purposes using
the straight-line method over their estimated useful lives. Leasehold improvements are being amortized over the shorter of the
useful life or the remaining lease term. Upon retirement or other disposition of these assets, the cost and related accumulated
depreciation of these assets are removed from the accounts and the resulting gains or losses are reflected in the results of operations.
Expenses for maintenance and repairs are charged to operations. Renewals and betterments are capitalized. Maintenance and repair
expenses totaled approximately $1,870,000 and $1,557,000 for the years ended June 30, 2020 and 2019 respectively. The estimated
useful lives in years are generally as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Diagnostic equipment</font></td>
<td style="text-align: right"><font style="font-size: 10pt">5–13</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Research, development and demonstration equipment</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3-7</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Machinery and equipment</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2-7</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Furniture and fixtures</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3-9</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2–10</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 90%; padding-left: 5.4pt"><font style="font-size: 10pt">Building</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">28</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-Lived Assets</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company periodically assesses the recoverability
of long-lived assets, including property and equipment and intangibles, other than goodwill, when there are indications of potential
impairment, based on estimates of undiscounted future cash flows. The amount of impairment is calculated by comparing anticipated
discounted future cash flows with the carrying value of the related asset. In performing this analysis, management considers such
factors as current results, trends, and future prospects, in addition to other economic factors.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other Intangible Assets</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">1) Patents and Copyrights</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization is calculated on the straight-line
basis over 15 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2) Non-Competition Agreements</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The non-competition agreements are being amortized
on the straight line basis over the length of the agreement (7 years).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">3) Customer Relationships</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization is calculated on the straight
line basis over 20 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Goodwill</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Generally accepted accounting principles in
the United States require the Company to perform a goodwill impairment test annually and more frequently when negative conditions
or a triggering event arises. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit’s
carrying amount, including goodwill to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds
its fair value, goodwill is considered potentially impaired and a second step is performed to measure the amount of impairment
loss, if any.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Acquired assets and assumed liabilities</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to ASC No. 805-10-25, if the initial
accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, but during
the allowed measurement period not to exceed one year from the acquisition date, the Company adjusts the provisional amounts recognized
at the acquisition date by means of adjusting the amount recognized for goodwill.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Research and Development Costs</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Research and development costs are charged
to expense as incurred. The costs of equipment that are acquired or constructed for research and development activities, and have
alternative future uses (either in research and development, marketing or production), are classified as property and equipment
and depreciated over their estimated useful lives.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Advertising Costs</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Advertising costs are expensed as incurred.
Advertising expense approximated $566,000 and $538,000 and for the years ended June 30, 2020 and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Shipping Costs</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s shipping and handling costs
are included in revenue from product sales and the related expense included in costs related to product sales is $12,056 and $13,695
for the years ended June 30, 2020 and 2019 respectively. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Income Taxes</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred tax assets and liabilities are determined
based on the difference between the financial statement carrying amounts and tax basis of assets and liabilities using enacted
tax rates in effect in the years in which the differences are expected to reverse.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Customer Advances</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash advances and progress payments received
on sales orders are reflected as customer advances until such time as revenue recognition occurs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Earnings Per Share</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings per share (“EPS”)
is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding
during the period. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class Method”, the Company
used the Two-Class method for calculating basic earnings per share and applied the if converted method in calculating diluted earnings
per share for the years ended June 30, 2020 and 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 years ended June 30, 2020 and 2019, diluted EPS for common shareholders includes 127,504
shares upon conversion of Class C Common.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Basic</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Common Stock</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Class C Common Stock</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Numerator:</font></td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-bottom: 2.5pt"><font style="font-size: 10pt">Net income available to common stockholders</font></td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">8,240,205</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">7,735,650</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; text-align: right"><font style="font-size: 10pt">128,500</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Denominator:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Weighted average shares outstanding</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,443,713</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,443,713</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Basic income per common share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.28</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.20</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.34</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Denominator:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Weighted average shares outstanding</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6,443,713</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Class C Common Stock</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">127,504</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total Denominator for diluted earnings per share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,571,217</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Diluted income per common share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.18</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.34</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2019</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Basic</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Common Stock</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Class C Common Stock</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Numerator:</font></td>
<td> </td>
<td colspan="3" style="text-align: right"> </td>
<td> </td>
<td colspan="3" style="text-align: right"> </td>
<td> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-bottom: 2.5pt"><font style="font-size: 10pt">Net income available to common stockholders</font></td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">15,371,131</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">14,366,798</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; text-align: right"><font style="font-size: 10pt">242,031</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Denominator:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Weighted average shares outstanding</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,354,103</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,354,103</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Basic income per common share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">2.41</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">2.26</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.63</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Denominator:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Weighted average shares outstanding</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6,354,103</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Class C Common Stock</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">127,504</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total Denominator for diluted earnings per share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,481,607</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Diluted income per common share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">2.22</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.63</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and Cash Equivalents</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents includes cash on
hand, cash in banks, investments in certificates of deposit with original maturities of 90 days or less, and money market funds.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Concentration of Credit Risk</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash: The Company maintains its cash and cash
equivalents with various financial institutions, which exceed federally insured limits throughout the year. At June 30, 2020, the
Company had cash on deposit of approximately $33,444,000 in excess of federally insured limits of $250,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Related Parties: Net revenues from related
parties accounted for approximately 12% and 11% of the consolidated net revenues for the years ended June 30, 2020 and 2019, respectively.
Net management fee receivables from the related party medical practices accounted for approximately 13% and 13% of the consolidated
accounts receivable for the years ended June 30, 2020 and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">See Note 3 regarding the Company’s concentrations
in the healthcare industry.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair Value of Financial Instruments</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements include various estimated
fair value information at June 30, 2020 and 2019, as required by ASC topic 820, "Disclosures about Fair Value of Financial
Instruments". Such information, which pertains to the Company's financial instruments, is based on the requirements set forth
in that Statement and does not purport to represent the aggregate net fair value to the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has established a three-tier fair
value hierarchy, which prioritizes the inputs used in measuring and revaluing fair value. These tiers include, Level 1, defined
as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets
that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data
exists, therefore requiring an entity to develop its own assumptions.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following methods and assumptions were
used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents: The carrying amount
approximates fair value because of the short-term maturity of those instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Short term investments: The carrying amount
approximates fair value because of the short-term maturity of those instruments. Such amounts include Certificates of Deposits
with original maturities greater than 90 days. These securities are classified as Level 1.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Receivable and accounts payable: The carrying
amounts approximate fair value because of the short maturity of those instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Notes receivable: The carrying amount approximates
fair value because the discounted present value of the cash flow generated by the parties approximates the carrying value of the
amounts due to the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-term debt and notes payable: The carrying
amounts of debt and notes payable approximate fair value due to the length of the maturities, the interest rates being tied to
market indices and/or due to the interest rates not being significantly different from the current market rates available to the
Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All of the Company's financial instruments
are held for purposes other than trading.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Reclassifications</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified
to conform to the current year presentation. The reclassifications did not have any effect on reported net income for any periods
presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The estimated useful lives in years are generally
as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Diagnostic equipment</font></td>
<td style="text-align: right"><font style="font-size: 10pt">5–13</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Research, development and demonstration equipment</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3-7</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Machinery and equipment</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2-7</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Furniture and fixtures</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3-9</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2–10</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 90%; padding-left: 5.4pt"><font style="font-size: 10pt">Building</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">28</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company’s patient fee revenues, net of contractual allowances
and discounts less the provision for bad debts for the years ended June 30, 2020 and 2019 are summarized in the following table.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">For the Years Ended June 30</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 62%; padding-left: 27.9pt; text-indent: -20pt"><font style="font-size: 10pt">Commercial Insurance/ Managed Care</font></td>
<td style="vertical-align: bottom; width: 3%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="font-size: 10pt">4,545,987</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="font-size: 10pt">5,218,656</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 27.9pt; text-indent: -20pt"><font style="font-size: 10pt">Medicare/Medicaid</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,038,288</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,172,543</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 10pt"><font style="font-size: 10pt">Workers' Compensation/Personal Injury</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,028,737</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,790,025</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 27.9pt; text-indent: -20pt"><font style="font-size: 10pt">Other</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 27.9pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 27.9pt; text-align: right"><font style="font-size: 10pt">882,248</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 27.9pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,026,312</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 27.9pt; text-indent: -20pt"><font style="font-size: 10pt">Net Patient Fee Revenue</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 27.9pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 27.9pt; text-align: right"><font style="font-size: 10pt">22,495,260</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 27.9pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">24,207,536</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the years ended June 30, 2020 and 2019,
diluted EPS for common shareholders includes 127,504 shares upon conversion of Class C Common.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Basic</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Common Stock</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Class C Common Stock</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Numerator:</font></td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-bottom: 2.5pt"><font style="font-size: 10pt">Net income available to common stockholders</font></td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">8,240,205</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">7,735,650</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; text-align: right"><font style="font-size: 10pt">128,500</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Denominator:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Weighted average shares outstanding</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,443,713</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,443,713</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Basic income per common share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.28</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.20</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.34</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Denominator:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Weighted average shares outstanding</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6,443,713</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Class C Common Stock</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">127,504</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total Denominator for diluted earnings per share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,571,217</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Diluted income per common share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.18</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.34</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2019</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Basic</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Common Stock</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Class C Common Stock</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Numerator:</font></td>
<td> </td>
<td colspan="3" style="text-align: right"> </td>
<td> </td>
<td colspan="3" style="text-align: right"> </td>
<td> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-bottom: 2.5pt"><font style="font-size: 10pt">Net income available to common stockholders</font></td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">15,371,131</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">14,366,798</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 5%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; width: 11%; text-align: right"><font style="font-size: 10pt">242,031</font></td>
<td style="width: 1%; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Denominator:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Weighted average shares outstanding</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,354,103</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,354,103</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Basic income per common share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">2.41</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">2.26</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.63</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Denominator:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Weighted average shares outstanding</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6,354,103</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Class C Common Stock</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">127,504</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total Denominator for diluted earnings per share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">6,481,607</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">382,513</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Diluted income per common share</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">2.22</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.63</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Future revenue to be recognized over the following
four years at June 30, 2020 are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 52%"><font style="font-size: 10pt">2022</font></td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 46%; text-align: right"><font style="font-size: 10pt">821,535</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top"><font style="font-size: 10pt">2023</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">744,660</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top"><font style="font-size: 10pt">2024</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">744,660</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top"><font style="font-size: 10pt">2025</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">344,750</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top"><font style="font-size: 10pt">Total</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,655,605</font></td>
<td style="vertical-align: bottom; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table sets forth the number of
our facilities for the years ended June 30, 2020 and 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="text-align: center"><font style="font-size: 10pt">For the Year Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 5.4pt"><font style="font-size: 10pt">Total Facilities Owned or Managed (at Beginning of Year)</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">26</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">26</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Facilities Added by:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-indent: 17.85pt"><font style="font-size: 10pt">Acquisition</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 17.85pt"><font style="font-size: 10pt">Internal development</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Managed Facilities Closed</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">(1</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 10pt">Total Facilities Owned or Managed (at End of Year)</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">25</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">26</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Information relating to uncompleted contracts
as of June 30, 2020 and 2019 is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">As of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 5.4pt"><font style="font-size: 10pt">Costs incurred on uncompleted contracts</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">448,437</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">448,437</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Estimated earnings</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">309,248</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,088,675</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">757,685</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,537,112</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Less: Billings to date</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">604,852</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,012,002</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">152,833</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">525,110</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories included in the accompanying consolidated
balance sheets consist of:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">As of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 5.4pt"><font style="font-size: 10pt">Purchased parts, components and supplies</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">1,544,036</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">1,639,777</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Work-in-process</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">104,734</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">158,389</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">1,648,770</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,798,166</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment, at cost, less accumulated
depreciation and amortization, at June 30, 2020 and 2019, is comprised of: </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">As of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 5.4pt"><font style="font-size: 10pt">Diagnostic equipment</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">28,434,063</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">26,090,218</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Research, development and demonstration equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5,901,961</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,605,906</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Machinery and equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,069,055</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,069,055</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Furniture and fixtures</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,291,666</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,122,102</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,736,825</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">8,023,292</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Building</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">939,614</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">939,614</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,373,184</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">43,850,187</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Less: Accumulated depreciation and amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">30,009,150</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">26,864,570</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">21,364,034</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">16,985,617</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other intangible assets, net of accumulated
amortization, at June 30, 2020 and 2019 are comprised of:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">As of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 5.4pt"><font style="font-size: 10pt">Capitalized software development costs</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">7,004,847</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">7,004,847</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Patents and copyrights</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5,081,721</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,964,199</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Non-competition agreements</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,100,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,100,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Customer relationships</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">3,800,000</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,800,000</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">19,986,568</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">19,869,046</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Less: Accumulated amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">15,877,439</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">15,113,371</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">4,109,129</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">4,755,675</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Amount of each class of HDM members’ equity as of June 30,
2020 and 2019</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">Class A Members</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">Class B Member</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">Class A Members</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">Class B Member</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 44%; padding-left: 4.35pt; text-indent: -4.35pt"><font style="font-size: 10pt">Opening Members’ Equity</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">2,155,725</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">36,543,786</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">3,559,182</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">31,775,922</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 4.35pt; text-indent: -4.35pt"><font style="font-size: 10pt">Share of Net Income</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,464,528</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,291,633</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5,196,543</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20,167,864</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 4.35pt; text-indent: -4.35pt"><font style="font-size: 10pt">Distributions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">(5,565,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">(12,985,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">(6,600,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(15,400,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 4.35pt; text-indent: -4.35pt"><font style="font-size: 10pt">Ending Members’ Equity</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">55,253</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">39,850,419</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 4.35pt; text-align: right"><font style="font-size: 10pt">2,155,725</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 4.35pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">36,543,786</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The maturities of debt over the next five years
and thereafter are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Years Ending June 30,</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 71%; text-align: right"><font style="font-size: 10pt">2021</font></td>
<td style="width: 10%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 17%; text-align: right"><font style="font-size: 10pt">108,379</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: right"><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">178,166</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: right"><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">180,972</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: right"><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">183,919</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: right"><font style="font-size: 10pt">2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">187,154</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: right"><font style="font-size: 10pt">Thereafter</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">135,205</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">973,795</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Components of the provision (benefit) for income
taxes are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Years Ended June 30</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Current:</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 5.4pt"><font style="font-size: 10pt">Federal</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">(187,255</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">State</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">513,204</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">250,000</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: right"><font style="font-size: 10pt">Subtotal</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">325,949</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">250,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Deferred:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Federal deferred taxes</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,953,349</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,685,299</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">State deferred taxes</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">165,480</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">70,221</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">Subtotal</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">2,118,829</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,755,520</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">2,444,778</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2,005,520</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A reconciliation of the federal statutory income
tax rate to the Company's effective tax rate as reported is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Years Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 6.3pt; text-indent: -6.3pt"><font style="font-size: 10pt">Taxes at federal statutory rate</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">21.0</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">21.0</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.3pt; text-indent: -6.3pt"><font style="font-size: 10pt">State and local income taxes (benefit), net of federal benefit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4.0</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4.0</font></td>
<td><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6.3pt; text-indent: -6.3pt"><font style="font-size: 10pt">Non Controlling interest</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(6.1</font></td>
<td><font style="font-size: 10pt">)%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(5.8</font></td>
<td><font style="font-size: 10pt">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.3pt; text-indent: -6.3pt"><font style="font-size: 10pt">Permanent differences</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.2</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(3.5</font></td>
<td><font style="font-size: 10pt">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6.3pt; text-indent: -6.3pt"><font style="font-size: 10pt">Change in the valuation allowance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(2.6</font></td>
<td><font style="font-size: 10pt">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 6.3pt; text-indent: -6.3pt"><font style="font-size: 10pt">Other</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 6.3pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 6.3pt; text-align: right"><font style="font-size: 10pt">(2.1</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)%</font></td>
<td style="padding-left: 6.3pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(4.2</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 6.3pt; text-indent: -6.3pt"><font style="font-size: 10pt">Effective income tax rate</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 6.3pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 6.3pt; text-align: right"><font style="font-size: 10pt">17.3</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td>
<td style="padding-left: 6.3pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8.9</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Significant components of the Company's deferred
tax assets and liabilities at June 30, 2020 and 2019 are as follows: </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Deferred tax assets:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 58%; padding-left: 5.4pt"><font style="font-size: 10pt">Allowance for doubtful accounts</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">3,946,801</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">3,011,480</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Non-deductible accruals</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">693,833</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">861,345</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Net operating carryforwards</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">13,720,637</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,448,054</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Tax credits</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,647,217</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,601,801</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Inventory</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">69,940</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">65,081</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Property and equipment and depreciation</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">168,371</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">192,133</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">23,246,799</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">25,179,894</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Valuation allowance</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">(4,437,042</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(4,242,147</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Total deferred tax assets</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">18,809,757</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20,937,747</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Intangibles</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">(234,106</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(243,267</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Total deferred tax liabilities</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">(234,106</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(243,267</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 10pt">Net deferred tax asset</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">18,575,651</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">20,694,480</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Included in other current liabilities are the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Accrued salaries, commissions and payroll taxes</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">4,491,941</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">3,897,833</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Litigation accruals</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">442,802</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">145,029</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Sales tax payable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,353,200</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,671,488</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Legal and other professional fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">112,867</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">125,567</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Accounting fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">120,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">105,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Self-funded health insurance reserve</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">86,504</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">67,825</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Accrued interest and penalty</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">877,787</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,054,134</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Other</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 9pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 9pt; text-align: right"><font style="font-size: 10pt">699,997</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 9pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">510,540</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">8,185,098</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">7,577,416</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The foreign product sales, as a percentage
of product sales to unrelated parties, were made to customers in the following countries:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">For the Years Ended June 30</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 68%; padding-left: 5.4pt"><font style="font-size: 10pt">Canada</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="width: 1%"> </td>
<td style="width: 3%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">.3</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">England</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">.3</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Germany</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20.2</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Puerto Rico</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">4.7</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">20.2</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">5.3</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Foreign service and repair fees, as a percentage
of total service and repair fees, were provided principally to the following countries:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">For the Years Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 68%; padding-left: 5.4pt"><font style="font-size: 10pt">Puerto Rico</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">1.6</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">1.6</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Switzerland</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Germany</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.5</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.4</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">England</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.7</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.6</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">United Arab Emirates</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Canada</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.4</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Greece</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.2</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Australia</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">1.0</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1.0</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">5.6</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">5.9</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td></tr>
</table>
13882013
36802342
15094816
31884
525110
152833
1798166
1648770
1512917
1757499
85088722
95889532
600000
20937747
18809757
16985617
21364034
31392458
1325870
3985397
3985397
4755675
4109129
1702462
2406667
1207052
653132
133560210
180259380
40530
108379
1861227
1965259
7577416
8185098
3370149
74699
3812115
4105265
798651
854579
14089939
18663428
2655605
243267
234106
92663
92663
30104464
1251171
273112
865416
749126
150311
1358168
35353736
15448107
54017164
31
31
647
38
638
38
181086517
183076888
115956378
126186963
2155725
55253
133560210
180259380
600000
671185
-64455456
-56215251
2005520
2444778
159657
15062932
0.0001
0.001
0.0001
0.001
453000
567000
453000
567000
313438
313438
313438
313438
0.0001
0.0001
0.0001
0.0001
0.0001
0.0001
8500000
227000
567000
227000
8500000
567000
6459106
146
382513
146
6369125
382513
6447463
146
382513
146
6357482
382513
675390
675390
P5Y
P13Y
P3Y
P7Y
P2Y
P7Y
P3Y
P9Y
P2Y
P10Y
P28Y
24207536
22495260
4545987
1038288
16028737
882248
5218656
1172543
16790025
1026312
127504
127504
1557000
1870000
21
3
18
77000
522000
538000
566000
13695
12056
127504
127504
33444000
250000
P15Y
P7Y
P20Y
0.12
0.11
0.13
0.13
22700000
190244
514561
9404944
11063233
2310731
3322055
777354
190244
10983022
1711385
22727698
821535
744660
744660
344750
2655605
26
26
-1
26
25
0.67
0.66
0.11
0.12
448437
448437
1088675
309248
1537112
757685
1012002
604852
1639777
1544036
158389
104734
43850187
51373184
28434063
5901961
2069055
3291666
10736825
939614
26090218
3605906
2069055
3122102
8023292
939614
26864570
30009150
3144580
2862117
19869046
19986568
7004847
7004847
5081721
4964199
4100000
4100000
3800000
3800000
15113371
15877439
4755675
4109129
5601656
370631
180631
190000
369241
179241
190000
372700
182700
190000
372399
182399
190000
359378
169378
190000
2264780
808113
1456667
128393
117522
-974374
-764068
183592
390476
190000
198660
585714
190000
P12Y
Cash dividends payable on the common stock shall, in all cases, be on a per share basis, one hundred twenty percent (120%) of the cash dividend payable on shares of Class B common stock and three hundred sixty percent (360%) of the cash dividend payable on a share of Class C common stock.
Although having greater voting power, each share of Class C common stock has only one-third of the rights of a share of Class B common stock to dividends and distributions.
On April 3, 1995, the stockholders ratified a proposal consisting of the creation of a new class of Class A non-voting preferred stock with special dividend rights and the declaration of a stock dividend on the Company's common stock consisting of one share of Class A non-voting preferred stock for every five shares of common stock. The stock dividend was payable to holders of common stock on October 20, 1995. Class A non-voting preferred stock issued pursuant to such stock dividend approximates 313,000 shares.
Class C common stock is convertible into shares of common stock on a three-for-one basis.
On April 3, 1995, the stockholders ratified a proposal creating a new Class C common stock and authorized the exchange offering of three shares of Class C common stock for each share of the Company's outstanding Class B common stock. The Class C common stock was offered on a three-for-one basis to the holders of the Class B common stock.
Class B common stock is convertible into shares of common stock on a one-for-one basis.
There were 146 of such shares outstanding at June 30, 2020, 2019
The Common stock has 1 vote per share.
The Class C common stock has 25 votes per share.
The Class A non-voting preferred stock has no voting rights.
The Class B common stock has 10 votes per share.
2155725
36543786
3559182
31775922
3464528
16291633
5196543
20167864
-5565000
-12985000
-6600000
-15400000
55253
39850419
2155725
36543786
0.505
0.495
0.604
0.458
0.300
4971094
313642
973795
273031
306056
700764
7586
0.07
0.01
0.040
240
monthly
4472
2026-10-31
447448
P5Y
108379
178166
180972
183919
187154
135205
973795
-187255
250000
513204
250000
325949
1685299
1953349
70221
165480
0.21
0.21
0.04
0.04
-0.058
-0.061
-0.035
0.002
-0.026
0.003
-0.042
-0.021
0.089
0.173
3011480
3946801
861345
693833
16448054
13720637
4601801
4647217
65081
69940
192133
168371
25179894
23246799
4242147
4437042
20937747
18809757
243267
234106
234106
54883000
2350000
195000
Company is allowing a full reimbursement of $1,342,370 of tax credits relating to the alternative minimum tax credits. The Company received the first half payment in June 2020. The balance of alternative minimum tax credits of $671,185 was received in July 2020. Previously, these credits were to be refunded over a 3 year period.
4440000
4437000
208000
3897833
4491941
145029
442802
1671488
1353200
125567
112867
105000
120000
67825
86504
1054134
877787
510540
699997
4688000
5136000
440000
0.5
0
0
The stockholders of the Company approved the 2000 Employee Stock Purchase Plan ("ESPP") at the Company's annual stockholders' meeting in April 2000. The ESPP provides for eligible employees to acquire common stock of the Company at a discount, not to exceed 15%. This plan has not been put into effect as of June 30, 2020.
90619
15859
1353000
832000
68000
87000
110000
165172
137200
304575
228204
1954744
1990380
69971
89981
The CEO and President of the Company is a minority owner of a billing company, which performs billing and collection services with respect to No-Fault and Workers’ Compensation claims of the Company’s clients. The monthly fee charged to the Company is $85,000. On June 1, 2017, the Company also entered into a one year renewable agreement to provide IT services to the billing company for a monthly fee of $23,884. The agreement was renewed on June 1, 2020 for another year.
Bensonhurst MRI Limited Partnership, in which the CEO and President of the Company holds an interest, is party to an agreement with the Company for the service and maintenance of its Upright MRI Scanner for a price of $110,000 per annum.
907084
875000
875000
907084
22134192
13650916
-6425411
20076327
-3419944
25554136
3836491
3908648
368498
3540150
370001
3466490
133560210
180283510
30492757
149790753
25065808
108494402
0.053
0.202
0.000
0.000
0.202
0.000
0.003
0.003
0.000
0.047
0.059
0.056
0.003
0.007
0.015
0.016
0.004
0.006
0.014
0.016
0.003
0.000
0.002
0.01
0.003
0.003
0.003
0.01
0.053
0.202
0.059
0.056
380000
3526742
1011324
777354
-1578078
599346
55683
-1868453
22727698
0.242
2000000
2000000
556924
89981
69971
0.505
20200000
19800000
12
2
35900000
1500000
4100000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue Recognition</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue on sales contracts for scanners, included
in “product sales” in the accompanying consolidated statements of operations, is recognized under the percentage-of-completion
method in accordance with FASB ASC 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts”.
The Company manufactures its scanners under specific contracts that provide for progress payments. Production and installation
take approximately three to six months.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue on scanner service contracts is recognized
on the straight-line method over the related contract period, usually one year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue from product sales (upgrades and supplies)
is recognized upon shipment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue under management contracts is recognized
based upon contractual agreements for management services rendered by the Company primarily under various long-term agreements
with various medical providers (the "PCs"). As of June 30, 2020, the Company has twenty one management agreements of
which three are with PC’s owned by Raymond V. Damadian, M.D., Chairman of the Board of FONAR (“the Related medical
practices”) and eighteen are with PC’s, which are all located in the state of New York (“the New York PC’s”),
owned by two unrelated radiologists. The contractual fees for services rendered to the PCs consists of fixed monthly fees per diagnostic
imaging facility ranging from approximately $77,000 to $522,000. All fees are re-negotiable at the anniversary of the agreements
and each year thereafter. The Company records a provision for bad debts for estimated uncollectible fees, which is reflected in
other operating expenses on the Statement of Operations. All fees are re-negotiable at the anniversary of the agreements and each
year thereafter.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 1, 2018, the Company adopted the new
revenue recognition accounting standard issued by the Financial Accounting Standards Board (“FASB”) and codified in
the ASC as topic 606 (“ASC 606”). 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 judgments employed in the determination of revenue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applied the modified retrospective
approach to all contracts when adopting ASC 606. As a result, at the adoption of ASC 606 the majority of what was previously classified
as the provision for bad debts in the statement of operations is now reflected as implicit price concessions (as defined in ASC
606) and therefore included as a reduction to net operating revenues in 2019. For changes in credit issues not assessed at the
date of service, the Company will prospectively recognize those amounts in other operating expenses on the statement of operations.
For periods prior to the adoption of ASC 606, the provision for bad debts has been presented consistent with the previous revenue
recognition standards that required it to be presented separately as a component of net operating revenues. Additionally, upon
adoption of ASC 606 the allowance for doubtful accounts of approximately $22.7 million as of July 1, 2018 was reclassified
as a component of net patient accounts receivable. Other than these changes in presentation on the condensed consolidated statement
of operations and condensed consolidated balance sheet, the adoption of ASC 606 did not have a material impact on the consolidated
results of operations for the year ended June 30, 2018 and is not expected to have a material impact on its consolidated results
of operations on a prospective basis. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company’s patient fee revenues, net of contractual allowances
and discounts less the provision for bad debts for the years ended June 30, 2020 and 2019 are summarized in the following table.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">For the Years Ended June 30</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; width: 62%; padding-left: 27.9pt; text-indent: -20pt"><font style="font-size: 10pt">Commercial Insurance/ Managed Care</font></td>
<td style="vertical-align: bottom; width: 3%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="font-size: 10pt">4,545,987</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="font-size: 10pt">5,218,656</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 27.9pt; text-indent: -20pt"><font style="font-size: 10pt">Medicare/Medicaid</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,038,288</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,172,543</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 10pt"><font style="font-size: 10pt">Workers' Compensation/Personal Injury</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,028,737</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,790,025</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 27.9pt; text-indent: -20pt"><font style="font-size: 10pt">Other</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 27.9pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 27.9pt; text-align: right"><font style="font-size: 10pt">882,248</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-left: 27.9pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,026,312</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 27.9pt; text-indent: -20pt"><font style="font-size: 10pt">Net Patient Fee Revenue</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 27.9pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 27.9pt; text-align: right"><font style="font-size: 10pt">22,495,260</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 27.9pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">24,207,536</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Short Term Investments</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Short term investments include certificates
of deposit with original maturities of greater than 90 days. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The estimated amortization of other intangible
assets for the five years ending June 30, 2025 and thereafter is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">For the Years Ending June 30,</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Patents and Copyrights</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Non- <br />
competition</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Customer Relationships</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right"><font style="font-size: 10pt">2021</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">370,631</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">180,631</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">190,000</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">369,241</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">179,241</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">190,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">372,700</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">182,700</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">190,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">372,399</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">182,399</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">190,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2025</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">359,378</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">169,378</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">190,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">Thereafter</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">2,264,780</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">808,113</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,456,667</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">4,109,129</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1,702,462</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2,406,667</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Information related to the above intangible
assets for the years ended June 30, 2020 and 2019 is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">As of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Balance – Beginning of Year</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">4,755,675</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">5,601,656</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Amounts capitalized</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">117,522</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">128,393</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Software or patents written off</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 10pt">Amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">(764,068</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(974,374</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 10pt">Balance – End of Year</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt">4,109,129</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-left: 5.4pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">4,755,675</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
3483849
7422413
2440640
4981773
746768
2737081
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">September 30, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">December 30, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">March 31, 2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%; padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font-size: 10pt">Total Revenues – Net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">21,747</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">21,451</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">21,686</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">20,806</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">85,690</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font-size: 10pt">Total Costs and Expenses</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,261</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,430</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">19,071</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20,278</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">72,040</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font-size: 10pt">Net Income</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,506</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,209</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,914</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,076</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">11,705</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Basic Net Income Per Common Share Available to Common Stockholders</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.48</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.45</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.18</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.09</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.20</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Diluted Net Income Per Common Share Available to Common Stockholders</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.47</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.44</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.18</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.09</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.18</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">September 30, 2018</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">December 30, 2018</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">March 31, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%; padding-left: 9pt"><font style="font-size: 10pt">Total Revenues – Net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">20,705</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">21,225</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">22,779</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">22,484</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">87,193</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt"><font style="font-size: 10pt">Total Costs and Expenses</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,163</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,245</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,171</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">18,480</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">65,059</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt"><font style="font-size: 10pt">Net Income</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,492</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,864</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5,201</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,665</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">17,222</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Basic Net Income Per Common Share Available to Common Stockholders</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.49</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.52</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.57</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.20</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.78</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Diluted Net Income Per Common Share Available to Common Stockholders</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.48</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.51</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.56</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.44</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.74</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">NOTE
7 - OTHER INTANGIBLE ASSETS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
intangible assets, net of accumulated amortization, at June 30, 2020 and 2019 are comprised of:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Capitalized
software development costs</font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7,004,847</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7,004,847</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Patents and copyrights</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">5,081,721</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,964,199</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Non-competition
agreements</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,100,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,100,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Customer
relationships</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,800,000</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,800,000</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,986,568</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">19,869,046</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Less:
Accumulated amortization</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">15,877,439</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">15,113,371</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,109,129</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,755,675</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
estimated amortization of other intangible assets for the five years ending June 30, 2025 and thereafter is as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">For
the Years Ending June 30,</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Patents
and Copyrights</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Non-
<br />
competition</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Customer
Relationships</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 20%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2021</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">370,631</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">180,631</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">190,000</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2022</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">369,241</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">179,241</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">190,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2023</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">372,700</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">182,700</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">190,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2024</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">372,399</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">182,399</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">190,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2025</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">359,378</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">169,378</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">190,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Thereafter</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,264,780</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">808,113</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,456,667</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,109,129</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,702,462</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,406,667</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
weighted average amortization period for other intangible assets is 12.0 years and they have no expected residual value.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> Information
related to the above intangible assets for the years ended June 30, 2020 and 2019 is as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">As
of June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Balance
– Beginning of Year</font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,755,675</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">5,601,656</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Amounts
capitalized</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">117,522</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">128,393</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Software
or patents written off</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Amortization</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(764,068</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(974,374</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Balance
– End of Year</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,109,129</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,755,675</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Amortization
of patents and copyrights for the years ended June 30, 2020 and 2019 amounted to $183,592 and $198,660, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Capitalized
software development costs were fully amortized as of June 30, 2018.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Amortization
of non-competition agreements for the years ended June 30, 2020 and 2019 amounted to $390,476 and $585,714, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Amortization
of customer relationships for the years ended June 30, 2020 and 2019 amounted to $190,000 and $190,000, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">NOTE
8 - CAPITAL STOCK</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Common
Stock</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Cash
dividends payable on the common stock shall, in all cases, be on a per share basis, one hundred twenty percent (120%) of the cash
dividend payable on shares of Class B common stock and three hundred sixty percent (360%) of the cash dividend payable on a share
of Class C common stock.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Class
B Common Stock</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Class
B common stock is convertible into shares of common stock on a one-for-one basis. Class B common stock has 10 votes per share.
There were 146 of such shares outstanding at June 30, 2020 and 2019.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Class
C Common Stock</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 3, 1995, the stockholders ratified a proposal creating a new Class C common stock and authorized the exchange offering of
three shares of Class C common stock for each share of the Company's outstanding Class B common stock. The Class C common stock
has 25 votes per share, as compared to 10 votes per share for the Class B common stock and one vote per share for the common stock.
The Class C common stock was offered on a three-for-one basis to the holders of the Class B common stock. Although having greater
voting power, each share of Class C common stock has only one-third of the rights of a share of Class B common stock to dividends
and distributions. Class C common stock is convertible into shares of common stock on a three-for-one basis.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Class
A Non-Voting Preferred Stock</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 3, 1995, the stockholders ratified a proposal consisting of the creation of a new class of Class A non-voting preferred
stock with special dividend rights and the declaration of a stock dividend on the Company's common stock consisting of one share
of Class A non-voting preferred stock for every five shares of common stock. The stock dividend was payable to holders of common
stock on October 20, 1995. Class A non-voting preferred stock issued pursuant to such stock dividend approximates 313,000 shares.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Class A non-voting preferred stock is entitled to a special dividend equal to 3-1/4% of first $10 million, 4-1/2% of next $20
million and 5-1/2% on amounts in excess of $30 million of the amount of any cash awards or settlements received by the Company
in connection with the enforcement of five of the Company's patents in its patent lawsuits, less the revised special dividend
payable on the common stock with respect to one of the Company's patents.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Class A non-voting preferred stock participates on an equal per share basis with the common stock in any dividends declared and
ranks equally with the common stock on distribution rights, liquidation rights and other rights and preferences (other than the
voting rights).</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Stock
Bonus Plans</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">On
April 23, 2010, the Board approved the 2010 Stock Bonus Plan. The plan entitles the Company to reserve 2,000,000 shares of common
stock. On August 10, 2010, the Company filed Form S-8 to register the 2,000,000 shares. As of June 30, 2020, 556,924 shares of
common stock of FONAR were available for future grant under this plan. For the years ended June 30, 2020 and 2019, 89,981 and
69,971 shares were issued respectively, of which $0 and $1,990,380 were expensed and included in selling, general and administrative
expenses for the years ended June 30, 2020 and 2019, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Options</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company had stock option plans, which provide for the awarding of incentive and non-qualified stock options to employees, directors
and consultants who may contribute to the success of the Company. The options granted vest either immediately or ratably over
a period of time from the date of grant, typically three or four years, at a price determined by the Board of Directors or a committee
of the Board of Directors, generally the fair value of the Company's common stock at the date of grant. The options must be exercised
within ten years from the date of grant.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">NOTE
11 - INCOME TAXES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">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 years tax filings and therefore it has not recorded a liability for unrecognized
tax benefits.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">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 2016 for federal and 2015 for state.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has recorded a deferred tax asset of $18,809,757 and a deferred tax liability of $234,106 as of June 30, 2020, primarily
relating to its net operating loss carryforwards of approximately $54,883,000 available to offset future taxable income through
2030. The net operating losses begin to expire in 2025 for federal tax and state income tax purposes.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">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 June 30, 2020, no such changes in ownership have occurred.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which
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 the partial value of the
deferred tax asset, which principally related to research and development tax credits.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of the remainder of the
valuation.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
valuation allowance for deferred tax assets increased during the year ended June 30, 2020, by approximately $195,000. The valuation
allowance decreased by approximately $2,350,000 during the year ended June 30, 2019.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
March 27, 2020 Congress enacted the CARES Act (Coronavirus Aid, Relief and Economic Security Act). The Act provides numerous tax
provisions and other stimulus measures, including temporary changes regarding prior and future operation losses, temporary changes
to prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer
portion of Social Security taxes, technical corrections to prior tax legislation for tax depreciation of certain qualified improvement
property and enhanced recoverability of AMT tax credits.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
the present time, the only impact of the CARES Act to the Company is allowing a full reimbursement of $1,342,370 of tax credits
relating to the alternative minimum tax credits. The Company received the first half payment in June 2020. The balance of alternative
minimum tax credits of $671,185 was received in July 2020. Previously, these credits were to be refunded over a 3 year period.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
we continue to monitor tax implications of the CARES Act and other state and federal stimulus tax legislation, we may make adjustments
to our estimates and record additional amounts for tax assets and liabilities.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Components
of the provision (benefit) for income taxes are as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Years
Ended June 30</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">Current:</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Federal</font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(187,255</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">State</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">513,204</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Subtotal</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">325,949</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Deferred:</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Federal deferred
taxes</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,953,349</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,685,299</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">State
deferred taxes</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">165,480</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">70,221</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Subtotal</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,118,829</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,755,520</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,444,778</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,005,520</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
reconciliation of the federal statutory income tax rate to the Company's effective tax rate as reported is as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Years
Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; padding-left: 6.3pt; text-indent: -6.3pt"><font style="font: 10pt Times New Roman, Times, Serif">Taxes
at federal statutory rate</font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">21.0</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">21.0</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.3pt; text-indent: -6.3pt"><font style="font: 10pt Times New Roman, Times, Serif">State
and local income taxes (benefit), net of federal benefit</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4.0</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4.0</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6.3pt; text-indent: -6.3pt"><font style="font: 10pt Times New Roman, Times, Serif">Non
Controlling interest</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(6.1</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(5.8</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.3pt; text-indent: -6.3pt"><font style="font: 10pt Times New Roman, Times, Serif">Permanent
differences</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.2</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(3.5</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6.3pt; text-indent: -6.3pt"><font style="font: 10pt Times New Roman, Times, Serif">Change
in the valuation allowance</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.3</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2.6</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 6.3pt; text-indent: -6.3pt"><font style="font: 10pt Times New Roman, Times, Serif">Other</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2.1</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(4.2</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 6.3pt; text-indent: -6.3pt"><font style="font: 10pt Times New Roman, Times, Serif">Effective
income tax rate</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">17.3</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">8.9</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of June 30, 2020, the Company has net operating loss (“NOL”) carryforwards of approximately $54,883,000 that will
be available to offset future taxable income. The utilization of certain of the NOLs is limited by separate return limitation
year rules pursuant to Section 1502 of the Internal Revenue Code.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has, for federal income tax purposes, research and development tax credits and investments tax credits carryforwards aggregating
$4,440,000. However, the realization of these credits may be limited as a result of expiring prior to their utilization. These
credits can only be applied after all net operating losses have been used, which expire through 2030. As such, the Company has
established a valuation reserve for anticipated unused credits of $4,437,000.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
addition, for New York State income tax purposes, the Company has tax credit carryforwards aggregating approximately $208,000
which, are accounted for under the flow-through method. </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company is also under audit with New York State for income tax and does not expect any material adjustments.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Significant
components of the Company's deferred tax assets and liabilities at June 30, 2020 and 2019 are as follows: </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">June
30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax assets:</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 58%; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Allowance
for doubtful accounts</font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,946,801</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,011,480</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Non-deductible accruals</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">693,833</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">861,345</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Net operating carryforwards</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">13,720,637</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">16,448,054</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Tax credits</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,647,217</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,601,801</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Inventory</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">69,940</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">65,081</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Property
and equipment and depreciation</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">168,371</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">192,133</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,246,799</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,179,894</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Valuation
allowance</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(4,437,042</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(4,242,147</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax
assets</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,809,757</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">20,937,747</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Intangibles</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(234,106</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(243,267</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
deferred tax liabilities</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(234,106</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(243,267</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Net
deferred tax asset</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,575,651</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">20,694,480</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
In September 2020, the Company entered into a settlement agreement with an unrelated third party for a claim made during March 2018 which was scheduled for arbitration. The settlement was for $1.2 million of which $900,000 is to be paid by the Company’s insurance with the remaining $315,000 to be paid by the Company. The $315,000 is included in other current liabilities as of June 30, 2020.
202268
33300000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 16 - SEGMENT AND RELATED INFORMATION</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company provides segment data in accordance
with the provisions of ASC topic 280, “Disclosures about Segments of an Enterprise and Related Information”.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company operates in two industry segments
- manufacturing and the servicing of medical equipment and management of diagnostic imaging centers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accounting policies of the segments are
the same as those described in the summary of significant accounting policies. All intersegment sales are market-based. The Company
evaluates performance based on income or loss from operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Summarized financial information concerning
the Company’s reportable segments is shown in the following table:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt">Manufacturing and Servicing of Medical</font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt">Management of Diagnostic Imaging</font></td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">Fiscal 2020:</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Equipment</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Center</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Totals</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 5.4pt"><font style="font-size: 10pt">Net revenues from external customers</font></td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">8,463,103</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">77,227,359</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">85,690,462</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Intersegment net revenues *</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">875,000</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">875,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">(Loss) Income from operations</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">(6,425,411</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">20,076,327</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">13,650,916</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Depreciation and amortization</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">368,498</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,540,150</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,908,648</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Compensatory element of stock  issuances</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Total identifiable assets</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">30,492,757</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">149,790,753</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">180,283,510</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Capital expenditures</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2,440,640</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">4,981,773</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">7,422,413</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">  Fiscal 2019:</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Net revenues from external customers</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">10,013,394</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">77,179,493</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">87,192,887</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Intersegment net revenues *</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">907,084</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">907,084</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">(Loss) Income from operations</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">(3,419,944</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">25,554,136</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">22,134,192</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Depreciation and amortization</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">370,001</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,466,490</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,836,491</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Compensatory element of stock  issuances</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1,990,380</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1,990,380</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Total identifiable assets</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">25,065,808</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">108,494,402</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">133,560,210</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Capital expenditures</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">746,768</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2,737,081</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,483,849</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">* Amounts eliminated in consolidation</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Export Product Sales</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s areas of operations are
principally in the United States. The Company had export sales of medical equipment amounting to 20.2% and 5.3% of product sales
revenues to third parties for the years ended June 30, 2020 and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The foreign product sales, as a percentage
of product sales to unrelated parties, were made to customers in the following countries:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">For the Years Ended June 30</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 68%; padding-left: 5.4pt"><font style="font-size: 10pt">Canada</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="width: 1%"> </td>
<td style="width: 3%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">.3</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">England</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">.3</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Germany</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20.2</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Puerto Rico</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">4.7</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">20.2</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">5.3</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Foreign Service and Repair Fees</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s areas of service and repair
are principally in the United States. The Company had foreign revenues of service and repair of medical equipment amounting to
5.6% and 5.9% of consolidated net service and repair fees for the years ended June 30, 2020 and 2019 respectively. Foreign service
and repair fees, as a percentage of total service and repair fees, were provided principally to the following countries:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">For the Years Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 68%; padding-left: 5.4pt"><font style="font-size: 10pt">Puerto Rico</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">1.6</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 3%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">1.6</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Switzerland</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Germany</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.5</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1.4</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">England</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.7</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.6</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">United Arab Emirates</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Canada</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.4</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Greece</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.2</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.3</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt">Australia</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1.0</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1.0</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">5.6</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">5.9</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> The Company does not have any material
assets outside of the United States.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Summarized financial information concerning
the Company’s reportable segments is shown in the following table:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt">Manufacturing and Servicing of Medical</font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt">Management of Diagnostic Imaging</font></td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">Fiscal 2020:</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Equipment</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Center</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Totals</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 5.4pt"><font style="font-size: 10pt">Net revenues from external customers</font></td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">8,463,103</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">77,227,359</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">85,690,462</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Intersegment net revenues *</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">875,000</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">875,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">(Loss) Income from operations</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">(6,425,411</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">20,076,327</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">13,650,916</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Depreciation and amortization</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">368,498</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,540,150</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,908,648</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Compensatory element of stock  issuances</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Total identifiable assets</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">30,492,757</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">149,790,753</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">180,283,510</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Capital expenditures</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2,440,640</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">4,981,773</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">7,422,413</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: justify"><font style="font-size: 10pt">  Fiscal 2019:</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Net revenues from external customers</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">10,013,394</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">77,179,493</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">87,192,887</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Intersegment net revenues *</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">907,084</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">907,084</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">(Loss) Income from operations</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">(3,419,944</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">25,554,136</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">22,134,192</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Depreciation and amortization</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">370,001</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,466,490</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,836,491</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Compensatory element of stock  issuances</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1,990,380</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1,990,380</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Total identifiable assets</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">25,065,808</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">108,494,402</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">133,560,210</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 10pt">Capital expenditures</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">746,768</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">2,737,081</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,483,849</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">* Amounts eliminated in consolidation</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 17 – ALLOWANCE FOR DOUBTFUL ACCOUNTS</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following represents a summary of allowance
for doubtful accounts for the years ended June 30, 2020 and 2019 respectively:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Description</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Balance <br />
June 30, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Additions (1)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Deductions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Balance <br />
June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%; padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Accounts receivable</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">190,244</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">380,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">55,683</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">514,561</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Management and other fees receivable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9,404,944</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,526,742</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,868,453</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">11,063,233</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Management and other fees receivable - related medical practices</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,310,731</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,011,324</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,322,055</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Notes receivable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">777,354</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">777,354</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.85pt"><font style="font-size: 10pt">  Description</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Balance</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">June 30, 2018</p></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">Additions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">Deductions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Balance</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">June 30, 2019</p></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Accounts receivables</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">190,244</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">190,244</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Management and other fees receivable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,983,022</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,578,078</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9,404,944</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Management and other fees receivable - related medical practices</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,711,385</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">599,346</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,310,731</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Medical receivables</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">22,727,698</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">22,727,698</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">(1) Included in provision for bad debts.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following represents a summary of allowance
for doubtful accounts for the years ended June 30, 2020 and 2019 respectively:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Description</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Balance <br />
June 30, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Additions (1)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Deductions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Balance <br />
June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%; padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Accounts receivable</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">190,244</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">380,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">55,683</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">514,561</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Management and other fees receivable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9,404,944</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,526,742</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,868,453</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">11,063,233</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Management and other fees receivable - related medical practices</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,310,731</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,011,324</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,322,055</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Notes receivable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">777,354</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">777,354</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1pt; padding-left: 8.85pt"><font style="font-size: 10pt">  Description</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Balance</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">June 30, 2018</p></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">Additions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">Deductions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Balance</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">June 30, 2019</p></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Accounts receivables</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">190,244</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">190,244</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Management and other fees receivable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,983,022</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,578,078</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9,404,944</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Management and other fees receivable - related medical practices</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,711,385</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">599,346</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,310,731</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 8.85pt; text-indent: -8.85pt"><font style="font-size: 10pt">Medical receivables</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">22,727,698</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">22,727,698</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">(1) Included in provision for bad debts.</p>
20694480
18575651
243267
234106
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> <font style="font-variant: normal">NOTE
3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLE AND MANAGEMENT AND OTHER FEES RECEIVABLE</font></font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Accounts
Receivable</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Long
Term Accounts Receivable</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company will generate revenue from long-term, non-cancellable contracts to provide service and repair services. Future revenue
to be recognized over the following four years at June 30, 2020 are as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 20%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; vertical-align: top; width: 51%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">2022</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 2%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 47%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">821,535</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 2%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; vertical-align: top; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">2023</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">744,660</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; vertical-align: top; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">2024</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">744,660</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; vertical-align: top; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">2025</font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">344,750</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; vertical-align: top; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">2,655,605</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Medical
Receivable</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Management
and Other Fees Receivable</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company’s receivables from the related and non-related professional corporations (“PCs”) substantially consist
of fees outstanding under management agreements. Payment of the outstanding fees is dependent on collection by the PCs of fees
from third party medical reimbursement organizations, principally insurance companies and health management organizations.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">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% and 67%, respectively, of the PCs’ 2020 and 2019 net revenues were derived from no-fault and personal
injury protection claims. The Company considers the aging of its accounts receivable in determining the amount of allowance for
doubtful accounts. The Company generally takes all legally available steps to collect its receivables. Credit losses associated
with the receivables are provided for in the consolidated financial statements and have historically been within management's
expectations.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Net
revenues from management and other fees charged to the related party medical practices accounted for approximately 12% and 11%,
of the consolidated net revenues for the years ended June 30, 2020 and 2019, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Tallahassee
Magnetic Resonance Imaging, PA, Stand Up MRI of Boca Raton, PA and Stand Up MRI & Diagnostic Center, PA (all related party
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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
following table sets forth the number of our facilities for the years ended June 30, 2020 and 2019.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">For
the Year Ended June 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2020</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 56%; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
Facilities Owned or Managed (at Beginning of Year)</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 8%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 12%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">26</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 8%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 12%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">26</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Facilities
Added by:</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-indent: 17.85pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Acquisition</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; text-indent: 17.85pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Internal
development</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Managed
Facilities Closed</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">(1</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">)</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
Facilities Owned or Managed (at End of Year)</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">25</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">26</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">NOTE
13 - COMMITMENTS AND CONTINGENCIES</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Leases</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company rents its operating facilities and certain equipment, pursuant to operating lease agreements expiring at various dates
through March 2030. The leases for certain facilities contain escalation clauses relating to increases in real property taxes
as well as certain maintenance costs.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif">Rent
expense for operating leases approximated $5,136,000 and $4,688,000, for the years ended June 30, 2020 and 2019, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company received approval from the Suffolk County IDA on February 29, 2016 of a 50% property tax abatement, valued at $440,000,
over a 10 year period commencing January 2017.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Employee
Benefit Plans</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company has a non-contributory 401(k) Plan (the “401(k) Plan”). The 401(k) Plan covers all non-union employees who
are at least 21 years of age with no minimum service requirements. There were no employer contributions to the Plan for the years
ended June 30, 2020 and 2019.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
stockholders of the Company approved the 2000 Employee Stock Purchase Plan (“ESPP”) at the Company’s annual
stockholders’ meeting in April 2000. The ESPP provides for eligible employees to acquire common stock of the Company at
a discount, not to exceed 15%. This plan has not been put into effect as of June 30, 2020.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Stipulation
Agreements</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company has entered into stipulation agreements with a number of its creditors that in the aggregate total $90,619, which is included
in other current liabilities on the Company’s balance sheet as of June 30, 2020. The monthly payments total $15,859. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif">Litigation</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">In
September 2020, the Company entered into a settlement agreement with an unrelated third party for a claim made during March 2018
which was scheduled for arbitration. The settlement was for $1.2 million of which $900,000 was paid by the Company’s insurance
on September 15, 2020 with the remaining $315,000 to be paid by the Company on September 28, 2020. The $315,000 is included in
other current liabilities as of June 30, 2020.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company is subject to other legal proceedings and claims arising from the ordinary course of its business, including personal
injury, customer contract and employment claims besides the claim above. In the opinion of management, and with consultation with
legal council, 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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif">Other
Matters</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company is also delinquent in filing sales tax returns for certain states, for which the Company has transacted business. The
Company has recorded tax obligations of approximately $1,353,000 plus interest and penalties of approximately $832,000. The Company
is in the process of determining its regulatory requirements in order to become compliant.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">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 $110,000 per person and for a maximum potential claim liability based
on member enrollment. With respect to this program, the Company considers historical and projected medical utilization data when
estimating its health insurance program liability and related expense. As of June 30, 2020 and 2019, the Company had approximately
$87,000 and $68,000, respectively, in reserve for its self-funded health insurance programs. The reserves are included in “Other
current liabilities” in the consolidated balance sheets.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">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 years covered by this report.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 14 - SUPPLEMENTAL CASH FLOW INFORMATION</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the years ended June 30, 2020 and 2019
the Company paid $137,200 and $165,172 for interest, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the years ended June 30, 2020 and 2019
the Company paid $228,204 and $304,575 for income taxes, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the years ended June 30, 2020 and 2019,
the Company issued 89,981 and 69,971 shares of common stock for costs and expenses totaling $1,990,380 and $1,954,744, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended June 30, 2020 the Company
entered into a capital lease for the purchase of equipment in the amount of $1,350,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 18 - QUARTERLY FINANCIAL DATA (UNAUDITED)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(000’s omitted, except per share data)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">September 30, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">December 30, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">March 31, 2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%; padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font-size: 10pt">Total Revenues – Net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">21,747</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">21,451</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">21,686</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">20,806</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">85,690</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font-size: 10pt">Total Costs and Expenses</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,261</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,430</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">19,071</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20,278</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">72,040</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><font style="font-size: 10pt">Net Income</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,506</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,209</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,914</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,076</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">11,705</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Basic Net Income Per Common Share Available to Common Stockholders</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.48</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.45</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.18</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.09</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.20</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Diluted Net Income Per Common Share Available to Common Stockholders</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.47</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.44</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.18</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.09</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.18</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">September 30, 2018</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">December 30, 2018</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">March 31, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">June 30, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%; padding-left: 9pt"><font style="font-size: 10pt">Total Revenues – Net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">20,705</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">21,225</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">22,779</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">22,484</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">87,193</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt"><font style="font-size: 10pt">Total Costs and Expenses</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,163</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,245</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,171</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">18,480</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">65,059</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt"><font style="font-size: 10pt">Net Income</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,492</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,864</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5,201</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,665</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">17,222</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Basic Net Income Per Common Share Available to Common Stockholders</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.49</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.52</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.57</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.20</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.78</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><font style="font-size: 10pt">Diluted Net Income Per Common Share Available to Common Stockholders</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.48</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.51</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.56</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.44</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.74</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">NOTE
19 – SUBSEQUENT EVENTS</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company evaluates events that have occurred after the balance sheet date, but before the consolidated financial statements are
issued.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Amendment
of Revolving Credit Agreement. </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">During
September 2020 the Company amended their revolving credit agreement. The terms increase the borrowing limits from $3,000,000 to
$10,000,000 and the agreement was extended to August 2021. The interest rate on borrowings remains at 4% along with certain
financial covenants.</font></p>
3736662
4312999
5988
15728935
16171782
25709489
27437768
6500614
6896482
2730071
The terms increase the borrowing limits from $3,000,000 to $10,000,000 and the agreement was extended to August 2021.
1350000
3000000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY
AND CAPITAL RESOURCES</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Description of Business</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">FONAR Corporation (the “Company”
or “FONAR”) is a Delaware corporation, which was incorporated on July 17, 1978. FONAR is engaged in the research, development,
production and marketing of medical scanning equipment, which uses principles of Magnetic Resonance Imaging ("MRI") for
the detection and diagnosis of human diseases. In addition to deriving revenues from the direct sale of MRI equipment, revenue
is also generated from our installed-base of customers through our service and upgrade programs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">FONAR, through its wholly-owned subsidiary
Health Management Corporation of America ("HMCA") provides comprehensive management services to diagnostic imaging facilities.
The services provided by the Company include development, administration, leasing of office space, facilities and medical equipment,
provision of supplies, staffing and supervision of non-medical personnel, legal services, accounting, billing and collection and
the development and implementation of practice growth and marketing strategies.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On 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% interest in
HDM. Health Management Corporation of America retained a direct ownership interest of 45.8% in HDM, and the original investors
in HDM retained a 30.0% ownership interest in the newly expanded HDM. The entire management of diagnostic imaging centers business
segment is now being conducted by HDM.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During March 2020 the global pandemic of COVID-19
has caused turbulence and uncertainty in the United States and international markets and economies which has adversely effected
our workforce, liquidity, financial conditions, revenues, profitability and business operations. Generally COVID-19 had caused
us to require that much of our workforce work from home and has restricted the ability of our personnel to travel for marketing
purposes or to service our customers. The Company experienced a sudden drop in scan volume for a short term period and while the
Company is not back to pre-COVID-19 levels, the volume has risen. During the 4th quarter of fiscal 2020, the Company was able to
enact certain decisions to allow the Company to survive during the global pandemic and from further losses or additional decreases
in scan volume. The Company immediately enacted wide scale furloughs, deferment of up to 50% of management salaries, halted variable
compensation plans and rent deferrals were negotiated with the majority of all landlords. The Company also received some government
stimulus funds from the Paycheck Protection Program (‘PPP’) program and Medicare advances/stimulus payments. 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 the positive cash flows, low debt and cash on hand, it will be able to continue operations going forward.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Principles
of Consolidation</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships.
The operating activities of subsidiaries are included in the accompanying consolidated statements from the date of acquisition.
All significant intercompany accounts and transactions have been eliminated in consolidation.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Use
of Estimates</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The most significant estimates
relate to receivable allowances, intangible assets, income taxes and related tax asset valuation allowances, useful lives of property
and equipment, contingencies, revenue recognition and the assessment of litigation. In addition, healthcare industry reforms and
reimbursement practices will continue to impact the Company's operations and the determination of contractual and other allowance
estimates. Actual results could differ from those estimates.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Inventories</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Inventories
consist of purchased parts, components and supplies, as well as work-in-process, and are stated at the lower of cost, determined
on the first-in, first-out method, or market.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Property
and Equipment</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Property
and equipment procured in the normal course of business is stated at cost. Property and equipment purchased in connection with
an acquisition is stated at its estimated fair value, generally based on an appraisal. Property and equipment is being depreciated
for financial accounting purposes using the straight-line method over their estimated useful lives. Leasehold improvements are
being amortized over the shorter of the useful life or the remaining lease term. Upon retirement or other disposition of these
assets, the cost and related accumulated depreciation of these assets are removed from the accounts and the resulting gains or
losses are reflected in the results of operations. Expenses for maintenance and repairs are charged to operations. Renewals and
betterments are capitalized. Maintenance and repair expenses totaled approximately $1,870,000 and $1,557,000 for the years ended
June 30, 2020 and 2019 respectively. The estimated useful lives in years are generally as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Diagnostic
equipment</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">5–13</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Research,
development and demonstration equipment</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">3-7</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Machinery
and equipment</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">2-7</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Furniture
and fixtures</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">3-9</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Leasehold
improvements</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">2–10</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 90%; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Building</font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 10%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">28</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Long-Lived
Assets</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company periodically assesses the recoverability of long-lived assets, including property and equipment and intangibles, other
than goodwill, when there are indications of potential impairment, based on estimates of undiscounted future cash flows. The amount
of impairment is calculated by comparing anticipated discounted future cash flows with the carrying value of the related asset.
In performing this analysis, management considers such factors as current results, trends, and future prospects, in addition to
other economic factors.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Other
Intangible Assets</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">1)
Patents and Copyrights</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Amortization
is calculated on the straight-line basis over 15 years.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">2)
Non-Competition Agreements</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
non-competition agreements are being amortized on the straight line basis over the length of the agreement (7 years).</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">3)
Customer Relationships</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Amortization
is calculated on the straight line basis over 20 years.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Goodwill</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Generally
accepted accounting principles in the United States require the Company to perform a goodwill impairment test annually and more
frequently when negative conditions or a triggering event arises. Impairment of goodwill is tested at the reporting unit level
by comparing the reporting unit’s carrying amount, including goodwill to the fair value of the reporting unit. If the carrying
amount of the reporting unit exceeds its fair value, goodwill is considered potentially impaired and a second step is performed
to measure the amount of impairment loss, if any.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Acquired
assets and assumed liabilities</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Pursuant
to ASC No. 805-10-25, if the initial accounting for a business combination is incomplete by the end of the reporting period in
which the combination occurs, but during the allowed measurement period not to exceed one year from the acquisition date, the
Company adjusts the provisional amounts recognized at the acquisition date by means of adjusting the amount recognized for goodwill.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"><font style="font: normal 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Revenue
Recognition</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Revenue
on sales contracts for scanners, included in “product sales” in the accompanying consolidated statements of operations,
is recognized under the percentage-of-completion method in accordance with FASB ASC 605-35, “Revenue Recognition –
Construction-Type and Production-Type Contracts”. The Company manufactures its scanners under specific contracts that provide
for progress payments. Production and installation take approximately three to six months.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Revenue
on scanner service contracts is recognized on the straight-line method over the related contract period, usually one year.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Revenue
from product sales (upgrades and supplies) is recognized upon shipment.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Revenue
under management contracts is recognized based upon contractual agreements for management services rendered by the Company primarily
under various long-term agreements with various medical providers (the "PCs"). As of June 30, 2020, the Company has
twenty one management agreements of which three are with PC’s owned by Raymond V. Damadian, M.D., Chairman of the Board
of FONAR (“the Related medical practices”) and eighteen are with PC’s, which are all located in the state of
New York (“the New York PC’s”), owned by two unrelated radiologists. The contractual fees for services rendered
to the PCs consists of fixed monthly fees per diagnostic imaging facility ranging from approximately $77,000 to $522,000. All
fees are re-negotiable at the anniversary of the agreements and each year thereafter. The Company records a provision for bad
debts for estimated uncollectible fees, which is reflected in other operating expenses on the Statement of Operations. All fees
are re-negotiable at the anniversary of the agreements and each year thereafter.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">On
July 1, 2018, the Company adopted the new revenue recognition accounting standard issued by the Financial Accounting Standards
Board (“FASB”) and codified in the ASC as topic 606 (“ASC 606”). 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 judgments employed in the determination
of revenue.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company applied the modified retrospective approach to all contracts when adopting ASC 606. As a result, at the adoption of ASC
606 the majority of what was previously classified as the provision for bad debts in the statement of operations is now reflected
as implicit price concessions (as defined in ASC 606) and therefore included as a reduction to net operating revenues in 2019.
For changes in credit issues not assessed at the date of service, the Company will prospectively recognize those amounts in other
operating expenses on the statement of operations. For periods prior to the adoption of ASC 606, the provision for bad debts has
been presented consistent with the previous revenue recognition standards that required it to be presented separately as a component
of net operating revenues. Additionally, upon adoption of ASC 606 the allowance for doubtful accounts of approximately $22.7 million
as of July 1, 2018 was reclassified as a component of net patient accounts receivable. Other than these changes in presentation
on the condensed consolidated statement of operations and condensed consolidated balance sheet, the adoption of ASC 606 did not
have a material impact on the consolidated results of operations for the year ended June 30, 2018 and did not have a material
impact on its consolidated results of operations on a prospective basis. </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">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.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company’s patient fee revenues, net of contractual allowances and discounts less the provision for bad debts for the years
ended June 30, 2020 and 2019 are summarized in the following table.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">For
the Years Ended June 30</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2020</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; vertical-align: top; width: 60%; text-align: left; text-indent: -20pt; padding-left: 27.9pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Commercial
Insurance/ Managed Care</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 4%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 15%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,545,987</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 2%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 15%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">5,218,656</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-indent: -20pt; padding-left: 27.9pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Medicare/Medicaid</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1,038,288</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1,172,543</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-indent: 10pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">Workers'
Compensation/Personal Injury</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">16,028,737</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">16,790,025</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-indent: -20pt; padding-left: 27.9pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Other</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">882,248</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1,026,312</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -20pt; padding-left: 27.9pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Net
Patient Fee Revenue</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">22,495,260</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">24,207,536</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"><font style="font: normal 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Research
and Development Costs</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Research
and development costs are charged to expense as incurred. The costs of equipment that are acquired or constructed for research
and development activities, and have alternative future uses (either in research and development, marketing or production), are
classified as property and equipment and depreciated over their estimated useful lives.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Advertising
Costs</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Advertising
costs are expensed as incurred. Advertising expense approximated $566,000 and $538,000 and for the years ended June 30, 2020 and
2019, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Shipping
Costs</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company’s shipping and handling costs are included in revenue from product sales and the related expense included in costs
related to product sales is $12,056 and $13,695 for the years ended June 30, 2020 and 2019 respectively. </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Income
Taxes</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Deferred
tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax basis
of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Customer
Advances</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Cash
advances and progress payments received on sales orders are reflected as customer advances until such time as revenue recognition
occurs.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Earnings
Per Share</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Basic
earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average
number of shares of common stock outstanding during the period. In accordance with ASC topic 260-10, “Participating Securities
and the Two-Class Method”, the Company used the Two-Class method for calculating basic earnings per share and applied the
if converted method in calculating diluted earnings per share for the years ended June 30, 2020 and 2019.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">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 years ended June 30, 2020 and 2019, diluted EPS for
common shareholders includes 127,504 shares upon conversion of Class C Common.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="11" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">June
30, 2020</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Basic</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Total</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Common
Stock</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Class
C Common Stock</font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Numerator:</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 46%; text-align: left; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Net
income available to common stockholders</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 11%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">8,240,205</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 11%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">7,735,650</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 11%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">128,500</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Denominator:</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Weighted
average shares outstanding</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6,443,713</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6,443,713</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">382,513</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Basic
income per common share</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1.28</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1.20</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">0.34</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Diluted</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Denominator:</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Weighted
average shares outstanding</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6,443,713</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">382,513</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Class
C Common Stock</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">127,504</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
Denominator for diluted earnings per share</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6,571,217</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">382,513</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Diluted
income per common share</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1.18</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">0.34</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">  </font></p>
<table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="11" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">June
30, 2019</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Basic</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Total</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Common
Stock</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Class
C Common Stock</font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Numerator:</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 46%; text-align: left; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Net
income available to common stockholders</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 11%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">15,371,131</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 11%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">14,366,798</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 5%; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; width: 11%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">242,031</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Denominator:</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Weighted
average shares outstanding</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6,354,103</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6,354,103</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">382,513</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Basic
income per common share</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">2.41</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">2.26</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">0.63</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Diluted</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Denominator:</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif">Weighted
average shares outstanding</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6,354,103</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">382,513</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Class
C Common Stock</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">127,504</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
Denominator for diluted earnings per share</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6,481,607</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">382,513</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Diluted
income per common share</font></td><td style="padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">2.22</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">0.63</font></td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Cash
and Cash Equivalents</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Cash
and cash equivalents includes cash on hand, cash in banks, investments in certificates of deposit with original maturities of
90 days or less, and money market funds.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Short
Term Investments</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Short
term investments include certificates of deposit with original maturities of greater than 90 days. </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Concentration
of Credit Risk</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Cash:
The Company maintains its cash and cash equivalents with various financial institutions, which exceed federally insured limits
throughout the year. At June 30, 2020, the Company had cash on deposit of approximately $33,444,000 in excess of federally insured
limits of $250,000.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Related
Parties: Net revenues from related parties accounted for approximately 12% and 11% of the consolidated net revenues for the years
ended June 30, 2020 and 2019, respectively. Net management fee receivables from the related party medical practices accounted
for approximately 13% and 13% of the consolidated accounts receivable for the years ended June 30, 2020 and 2019, respectively.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">See
Note 3 regarding the Company’s concentrations in the healthcare industry.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Fair
Value of Financial Instruments</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
financial statements include various estimated fair value information at June 30, 2020 and 2019, as required by ASC topic 820,
"Disclosures about Fair Value of Financial Instruments". Such information, which pertains to the Company's financial
instruments, is based on the requirements set forth in that Statement and does not purport to represent the aggregate net fair
value to the Company.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company has established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring and revaluing fair value.
These tiers include, Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs
other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable
inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is
practicable to estimate that value:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Cash
and cash equivalents: The carrying amount approximates fair value because of the short-term maturity of those instruments.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Short
term investments: The carrying amount approximates fair value because of the short-term maturity of those instruments. Such amounts
include Certificates of Deposits with original maturities greater than 90 days. These securities are classified as Level 1.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Receivable
and accounts payable: The carrying amounts approximate fair value because of the short maturity of those instruments.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Notes
receivable: The carrying amount approximates fair value because the discounted present value of the cash flow generated by the
parties approximates the carrying value of the amounts due to the Company.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Long-term
debt and notes payable: The carrying amounts of debt and notes payable approximate fair value due to the length of the maturities,
the interest rates being tied to market indices and/or due to the interest rates not being significantly different from the current
market rates available to the Company.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">All
of the Company's financial instruments are held for purposes other than trading.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Recent
Accounting Pronouncements</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">In
January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other
(Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment
test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets
and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed
in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill
impairment tests in fiscal years beginning after December 15, 2019. The Company adopted the Standard on July 1, 2020 and the impact
of adopting this guidance will have no material impact on our Consolidated Financial Statements.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">During
February 2016, FAS issued ASU 2016-02, Leases (Topic 842). The new 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. This classification will determine whether lease expense is recognized based on an effective interest method or
on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability
for all leases with a term of greater than 12 months regardless of their classification. Lease with a term of 12 months or less
will be accounted for similar to existing guidance for operating leases. The standard was effective for us beginning July 1, 2019.
We have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply
the standard to the comparative periods presented in the consolidated financial statements. We have also elected the transition
package of thee practical expedients permitted within the standard which eliminates the requirements to reassess prior conclusions
about lease identification, lease classification and indirect costs. The adoption of this guidance had a material impact on the
Company’s balance sheet by virtue of including the present value of its future operating lease payments as a liability of
$33.3 million and related right-to-use lease assets as of July 1, 2019. At the time of adoption of this guidance we had no significant
financing leases.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company accounts for its various operating leases in accordance with Accounting Standards Codification (‘ASC’) 842
– Lease, 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. Also included in other current assets is a $202,268 receivable from a landlord for tenant
improvements. 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 June 30, 2020 is as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p><table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Year
Ending June 30,</font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="4" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
Lease Payments</font></td><td style="text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="4" style="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><font style="font: normal 10pt Times New Roman, Times, Serif">Financing
Lease Payments</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 6%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; width: 16%; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2021</font></td><td style="width: 6%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 6%; text-align: right"></td>
<td style="text-align: right; width: 1%; vertical-align: bottom"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">5,078,892</font></td><td style="width: 6%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 11%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">122,172</font></td><td style="width: 6%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2022</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,826,934</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">244,343</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2023</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,787,845</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">244,343</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2024</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,501,027</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">244,343</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2025</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,445,344</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">244,343</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Thereafter</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">19,607,295</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">407,240</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Present
value discount</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">(9,772,724</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">)</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">(180,914</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">   Total
lease liability</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">33,474,613</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1,325,870</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Weighted
Average Remaining Lease Term</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 70%; text-align: left; text-indent: 30.9pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
leases - years</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 10%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 18%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">10.4</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; text-indent: 30.9pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Finance
lease - years</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6.6</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Weighted
Average Discount Rate</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; text-indent: 30.9pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
leases</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">5.5</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; text-indent: 30.9pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Finance
lease</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">3.6</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif">The
components of lease expense were as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">For
year ended June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 70%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
lease cost</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 16%; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 12%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">5,135,604</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Finance
lease cost:</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt"><font style="font: normal 10pt Times New Roman, Times, Serif">   Depreciation
of leased equipment</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt"><font style="font: normal 10pt Times New Roman, Times, Serif">   Interest
on lease liabilities</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
finance lease cost</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif">Supplemental
cash flow information related to leases was as follows:</font></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: normal; font-style: normal"></td><td style="font-weight: normal; font-style: normal; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">For
year ended June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif">Cash
paid for amounts included in the measurement of lease liabilities:</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
cash flows from operating leases</font></td><td style="width: 16%; font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,170,977</font></td><td style="width: 1%; font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Financing
cash flows from financing leases</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 11.75pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Right-of-use
& equipment assets obtained in exchange for lease obligations:</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
leases(1)</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">34,786,611</font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Financing
leases</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1,325,871</font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">(1)
Amounts for the year ended June 30, 2020 include the transition adjustment for the adoption of topic 842 of $31,651,110.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">FASB,
the Emerging Issues Task Force and the SEC have issued certain other accounting standards,
updates, and regulations as of June 30, 2020 that will become effective in subsequent
periods; however, management does not believe that any of those updates would have significantly
affected our financial accounting measures or disclosures had they been in effect during
2020 or 2019, and it does not believe that any of those pronouncements will have a significant
impact on our consolidated financial statements at the time they become effective.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Reclassifications</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Certain
prior year amounts have been reclassified to conform to the current year presentation. The reclassifications did not have any
effect on reported net income for any periods presented.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">Recent
Accounting Pronouncements</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">In
January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other
(Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment
test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets
and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed
in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill
impairment tests in fiscal years beginning after December 15, 2019. The Company adopted the Standard on July 1, 2020 and the impact
of adopting this guidance will have no material impact on our Consolidated Financial Statements.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">During
February 2016, FAS issued ASU 2016-02, Leases (Topic 842). The new 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. This classification will determine whether lease expense is recognized based on an effective interest method or
on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability
for all leases with a term of greater than 12 months regardless of their classification. Lease with a term of 12 months or less
will be accounted for similar to existing guidance for operating leases. The standard was effective for us beginning July 1, 2019.
We have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply
the standard to the comparative periods presented in the consolidated financial statements. We have also elected the transition
package of thee practical expedients permitted within the standard which eliminates the requirements to reassess prior conclusions
about lease identification, lease classification and indirect costs. The adoption of this guidance had a material impact on the
Company’s balance sheet by virtue of including the present value of its future operating lease payments as a liability of
$33.3 million and related right-to-use lease assets as of July 1, 2019. At the time of adoption of this guidance we had no significant
financing leases.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">The
Company accounts for its various operating leases in accordance with Accounting Standards Codification (‘ASC’) 842
– Lease, 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. Also included in other current assets is a $202,268 receivable from a landlord for tenant
improvements. 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 June 30, 2020 is as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p><table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Year
Ending June 30,</font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="4" style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
Lease Payments</font></td><td style="text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="4" style="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><font style="font: normal 10pt Times New Roman, Times, Serif">Financing
Lease Payments</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 6%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; width: 16%; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2021</font></td><td style="width: 6%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 6%; text-align: right"></td>
<td style="text-align: right; width: 1%; vertical-align: bottom"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">5,078,892</font></td><td style="width: 6%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 11%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">122,172</font></td><td style="width: 6%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2022</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,826,934</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">244,343</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2023</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,787,845</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">244,343</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2024</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,501,027</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">244,343</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">2025</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,445,344</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">244,343</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Thereafter</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">19,607,295</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">407,240</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Present
value discount</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">(9,772,724</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">)</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">(180,914</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="vertical-align: bottom; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">   Total
lease liability</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">33,474,613</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1,325,870</font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: center"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">Weighted
Average Remaining Lease Term</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 70%; text-align: left; text-indent: 30.9pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
leases - years</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 10%"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 18%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">10.4</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; text-indent: 30.9pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Finance
lease - years</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">6.6</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Weighted
Average Discount Rate</font></td><td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; text-indent: 30.9pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
leases</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">5.5</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; text-indent: 30.9pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Finance
lease</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">3.6</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif">The
components of lease expense were as follows:</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">For
year ended June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 70%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
lease cost</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 16%; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 12%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">5,135,604</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Finance
lease cost:</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt"><font style="font: normal 10pt Times New Roman, Times, Serif">   Depreciation
of leased equipment</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt"><font style="font: normal 10pt Times New Roman, Times, Serif">   Interest
on lease liabilities</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
finance lease cost</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif">Supplemental
cash flow information related to leases was as follows:</font></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: normal; font-style: normal"></td><td style="font-weight: normal; font-style: normal; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">For
year ended June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif">Cash
paid for amounts included in the measurement of lease liabilities:</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
cash flows from operating leases</font></td><td style="width: 16%; font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,170,977</font></td><td style="width: 1%; font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Financing
cash flows from financing leases</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 11.75pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Right-of-use
& equipment assets obtained in exchange for lease obligations:</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
leases(1)</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">34,786,611</font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Financing
leases</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1,325,871</font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">(1)
Amounts for the year ended June 30, 2020 include the transition adjustment for the adoption of topic 842 of $31,651,110.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">FASB,
the Emerging Issues Task Force and the SEC have issued certain other accounting standards,
updates, and regulations as of June 30, 2020 that will become effective in subsequent
periods; however, management does not believe that any of those updates would have significantly
affected our financial accounting measures or disclosures had they been in effect during
2020 or 2019, and it does not believe that any of those pronouncements will have a significant
impact on our consolidated financial statements at the time they become effective.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 10 - LONG-TERM DEBT, NOTES PAYABLE AND
CAPITAL LEASES</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-term debt, notes payable and capital leases
consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $447,448 as of June 30, 2020.</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">273,031</font></td>
<td style="width: 1%"> </td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">306,056</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">Note payable received under the Paycheck Protection Program (‘PPP’) which was established as part of the Coronavirus Aid, Relief and Economic Security Act (“Cares Act’) that provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses. The loans and accrued interest are forgivable after 24 weeks as long as the proceeds are used for eligible purposes, including payroll, benefits, rent and utilities and maintains certain payroll levels. The unforgiven portion of the PPP loan is payable over five years at an interest rate of 1%, with a deferral of payments for the first six months. The proceeds from the note payable were received on June 30, 2020.</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">700,764</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">The revolving credit note was extended to August 2021. The Company can borrow up to $10,000,000 and prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4.0% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis. The Company still has the ability to draw down on the line. See Note 19.</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">Other (including capital leases for property and equipment).</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">7,586</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">973,795</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">313,642</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">Less: Current portion</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">108,379</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">40,530</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">865,416</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">273,112</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The maturities of debt over the next five years
and thereafter are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Years Ending June 30,</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 71%; text-align: right"><font style="font-size: 10pt">2021</font></td>
<td style="width: 10%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 17%; text-align: right"><font style="font-size: 10pt">108,379</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: right"><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">178,166</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: right"><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">180,972</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: right"><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">183,919</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: right"><font style="font-size: 10pt">2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">187,154</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: right"><font style="font-size: 10pt">Thereafter</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">135,205</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">973,795</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-term debt, notes payable and capital leases
consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2019</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">Note payable requiring monthly payments of interest at a rate of 7% until May 2009 followed by 240 monthly payments of $4,472 through October 2026. The loan is collateralized by a building with a net book value of $447,448 as of June 30, 2020.</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">273,031</font></td>
<td style="width: 1%"> </td>
<td style="width: 3%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">306,056</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">Note payable received under the Paycheck Protection Program (‘PPP’) which was established as part of the Coronavirus Aid, Relief and Economic Security Act (“Cares Act’) that provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses. The loans and accrued interest are forgivable after 24 weeks as long as the proceeds are used for eligible purposes, including payroll, benefits, rent and utilities and maintains certain payroll levels. The unforgiven portion of the PPP loan is payable over five years at an interest rate of 1%, with a deferral of payments for the first six months. The proceeds from the note payable were received on June 30, 2020.</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">700,764</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">The revolving credit note was extended to August 2021. The Company can borrow up to $10,000,000 and prepay the loan in whole or part in multiples of $100,000 at any time without penalty. The note bears interest at a rate of 4.0% per annum and is payable monthly. The loan is collateralized by substantially all of the Company’s assets. The loan also contains certain financial covenants that must be met on a periodic basis. The Company still has the ability to draw down on the line. See Note 19.</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">Other (including capital leases for property and equipment).</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">7,586</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">973,795</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">313,642</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 10pt">Less: Current portion</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">108,379</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">40,530</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">865,416</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">273,112</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A reconciliation of operating and financing
lease payments undiscounted cash flows to lease liabilities recognized as of June 30, 2020 is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Year Ending June 30,</font></td>
<td style="vertical-align: bottom"> </td>
<td colspan="4" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Operating Lease Payments</font></td>
<td style="vertical-align: bottom; text-align: center"> </td>
<td colspan="4" style="border-bottom: black 1pt solid; vertical-align: top; text-align: center"><font style="font-size: 10pt">Financing Lease Payments</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 5%"> </td>
<td style="vertical-align: bottom; width: 24%; text-align: center"><font style="font-size: 10pt">2021</font></td>
<td style="vertical-align: bottom; width: 5%"> </td>
<td style="vertical-align: bottom; width: 11%"> </td>
<td style="vertical-align: top; width: 5%"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: right"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">5,078,892</font></td>
<td style="vertical-align: bottom; width: 5%"> </td>
<td style="vertical-align: bottom; width: 11%"> </td>
<td style="vertical-align: bottom; width: 5%"> </td>
<td style="vertical-align: top; width: 1%; text-align: right"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">122,172</font></td>
<td style="vertical-align: bottom; width: 5%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,826,934</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">244,343</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,787,845</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">244,343</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,501,027</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">244,343</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2025</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,445,344</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">244,343</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">Thereafter</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">19,607,295</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">407,240</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">Present value discount</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(9,772,724</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(180,914</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">   Total lease liability</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">33,474,613</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,325,870</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Weighted Average Remaining Lease Term</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 71%; padding-left: 5.4pt; text-indent: 30.9pt"><font style="font-size: 10pt">Operating leases - years</font></td>
<td style="width: 10%"> </td>
<td style="width: 1%"> </td>
<td style="width: 17%; text-align: right"><font style="font-size: 10pt">10.4</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 30.9pt"><font style="font-size: 10pt">Finance lease - years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6.6</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">Weighted Average Discount Rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 30.9pt"><font style="font-size: 10pt">Operating leases</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5.5</font></td>
<td><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-indent: 30.9pt"><font style="font-size: 10pt">Finance lease</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3.6</font></td>
<td><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> The components of lease expense were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">For
year ended June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 70%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
lease cost</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 16%; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 12%; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">5,135,604</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Finance
lease cost:</font></td><td style="padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt"><font style="font: normal 10pt Times New Roman, Times, Serif">   Depreciation
of leased equipment</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt"><font style="font: normal 10pt Times New Roman, Times, Serif">   Interest
on lease liabilities</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Total
finance lease cost</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Supplemental
cash flow information related to leases was as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: normal; font-style: normal"></td><td style="font-weight: normal; font-style: normal; padding-bottom: 1pt"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: center"><font style="font: normal 10pt Times New Roman, Times, Serif">For
year ended June 30, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif">Cash
paid for amounts included in the measurement of lease liabilities:</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
cash flows from operating leases</font></td><td style="width: 16%; font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">4,170,977</font></td><td style="width: 1%; font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Financing
cash flows from financing leases</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">—  </font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 11.75pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Right-of-use
& equipment assets obtained in exchange for lease obligations:</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Operating
leases(1)</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">34,786,611</font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: normal; font-style: normal; text-align: left; text-indent: -11.75pt; padding-left: 30pt"><font style="font: normal 10pt Times New Roman, Times, Serif">Financing
leases</font></td><td style="font-weight: normal; font-style: normal"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: normal; font-style: normal; text-align: right"><font style="font: normal 10pt Times New Roman, Times, Serif">1,325,871</font></td><td style="font-weight: normal; font-style: normal; text-align: left"><font style="font: normal 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
5135604
4170977
34786611
1325871
5078892
4826934
4787845
4501027
4445344
19607295
9772724
33474613
122172
244343
244343
244343
244343
407240
180914
1325870
P10Y4M24D
P6Y7M6D
0.055
0.036