FONAR CORP (FONR) SEC Filing 10-Q Quarterly report for the period ending Sunday, December 31, 2017

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NEWS   Fonar Corporation
For Immediate Release  The Inventor of MR Scanning™
Contact: Daniel Culver  An ISO 9001 Company
Director of Communications  Melville, New York 11747
E-mail: investor@fonar.com  Phone: (631) 694-2929
www.fonar.com  Fax: (631) 390-1772

 

FONAR Announces Fiscal 2018 2nd Quarter and Six Months Financial Results

·                     26% Increase in Income from Operations, to $5.8 million, for the quarter ended December 31, 2017, versus same quarter during prior year.

·                     10% Increase in Total Revenues – Net, to $20.2 million, for the quarter ended December 31, 2017, versus same quarter during prior year.

·                     3% Decrease in Diluted Net Income per Common Share available to Common Shareholders to $0.61, for the quarter ended December 31, 2017, versus same quarter during prior year.

·                     6% Increase in Net Income, to $5.2 million, for the quarter ended December 31, 2017, versus same quarter during prior year.

MELVILLE, NEW YORK, February 12, 2018 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning™, reported today its financial results for the 2nd Fiscal Quarter of 2018 and the six month period ended December 31, 2017.

The Company’s two industry segments are: development, manufacturing and servicing of the FONAR UPRIGHT® Multi-Position™ MRI, aka Stand-Up® MRI, and management of 26 MRI centers through its subsidiary, Health Management Company of America (HMCA).

The FONAR UPRIGHT® Multi-Position™ MRI scanner is the world’s only MRI scanner licensed under FONAR’s multiple UPRIGHT® MRI patents to scan all the patient’s body parts in their normal full weight-bearing UPRIGHT® position. FONAR’s substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging on all the gravity sensitive regions of the human anatomy, especially the brain, extremities, spine and cerebrospinal fluid (CSF) flow.

Financial Highlights

Total Revenues – Net, for the quarter ended December 31, 2017 increased 10% to $20.2 million as compared to the quarter ended December 31, 2016, of $18.4 million.

Total Revenues – Net, for the six month period ended December 31, 2017, increased 6% to $39.5 million as compared to the six month period ended December 31, 2016, of $37.1 million.

Income from Operations, for the quarter ended December 31, 2017, increased 26% to $5.8 million, as compared to the quarter ended December 31, 2016, of $4.6 million.

Income from Operations, for the six month period ended December 31, 2017, increased 13% to $10.6 million as compared to the six month period ended December 31, 2016, of $9.4 million.

Net Income, for the quarter ended December 31, 2017, increased 6% to $5.2 million, as compared to the quarter ended December 31, 2016, of $4.9 million.

Net Income, for the six month period ended December 31, 2017, increased 4% to $9.8 million, as compared to the six month period ended December 31, 2016, of $9.4 million.

Net Income Available to Common Stockholders, for the quarter ended December 31, 2017, decreased 1% to $3.9 million as compared to the quarter ended December 31, 2016, of $4.0 million.

Net Income Available to Common Stockholders, for the six month period ended December 31, 2017, increased 1% to $7.4 million, as compared to the six month period ended December 31, 2016, of $7.3 million.

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FONAR CORPORATION AND SUBSIDIARIES

Basic Net Income per Common Share Available to Common Stockholders, for the quarter ended December 31, 2017, decreased 3% to $0.62 per share, as compared to the quarter ended December 31, 2016, of $0.64 per share.

Basic Net Income per Common Share Available to Common Stockholders, for the six month period ended December 31, 2017, decreased 1% to $1.18 per share, as compared to the quarter ended December 31, 2016, of $1.19 per share.

Diluted Net Income per Common Share Available to Common Stockholders, for the quarter ended December 31, 2017, decreased 3% to $0.61 per share, as compared to the quarter ended December 31, 2016, of $0.63 per share.

Diluted Net Income per Common Share Available to Common Stockholders, for the six month period ended December 31, 2017, decreased 1% to $1.16 per share, as compared to the quarter ended December 31, 2016, of $1.17 per share.

Total Assets, at December 31, 2017, was $105.2 million, as compared to $98.8 million at June 30, 2017.

Total Current Assets, at December 31, 2017, was $60.2 million, as compared to $53.4 million at June 30, 2016.

Total Cash and Cash Equivalents, at December 31, 2017, was $14.2 million, as compared to $10.1 million at June 30, 2017.

Total Liabilities, at December 31, 2017, was $15.2 million, as compared to $15.9 million at June 30, 2017.

Total Current Liabilities, at December 31, 2017, was $13.6 million, as compared to $14.2 million at June 30, 2017.

Management Discussion

The Tax Cuts and Jobs Act was signed into law on December 22, 2017 and makes numerous changes to the Internal Revenue Code.  Among other changes, the Act reduces the US corporate income tax rate to 21% effective January 1, 2018.  Because the Act became effective mid-way through the Company’s tax year, the Company will have a US statutory income tax rate of 27.7% for the fiscal 2018 and will have a 21% statutory income tax rate for fiscal years thereafter.

Under ASC Topic 740, Accounting for Income Taxes, the enactment of the Tax Act also requires companies to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation in enacted. The Company’s gross deferred tax assets and liabilities will be revalued from 35% to 21% with a corresponding offset to the valuation allowance and any potential other taxes arising due to the Tax Act will result in reductions to its net operating loss carryforward and valuation allowance. The Company will continue to analyze the Tax Act to assess the full effects on its financial results, including disclosures, for our fiscal year ending June 30, 2018.

President and CEO, Timothy R. Damadian said, “We are very pleased with the Company’s second-quarter results. In fact, our income from operations was close to the highest that we have ever achieved. Also, without the reduction in the deferred tax asset, we would have had a year-over-year increase of 11% to $0.70 in Diluted Net Income per Common Share.

“We are already seeing the positive effects the recent federal tax cuts are having on the economy,” Mr. Damadian continued. “Higher wages and more jobs mean more Americans will be able to afford high-quality healthcare, which translates to increased patient volume at HMCA-managed MRI scanning centers.”

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FONAR CORPORATION AND SUBSIDIARIES

"It's rewarding to me," said Raymond V. Damadian, M.D., Chairman of the Board of Directors of FONAR Corporation, "how consistently profitable we are. Our UPRIGHT® Multi-Position™ (aka Stand-Up®) MRI scanner, for example, is unique. Its ability to medically visualize the spine of a patient with back pain (which condition is responsible for a very significant percentage of all MRI scans performed by all MRI scanners worldwide each year) in its normal upright position is unique. Its power to visualize the spine supporting the full weight load that it normally has to sustain each day and to position the patient in the exact position (that he/she specifies to the MRI technologist who is positioning him/her in the FONAR UPRIGHT® Multi-Position™ MRI) that generates his/her pain (which the conventional recumbent MRI cannot do) is unparalleled."

"This power of the FONAR UPRIGHT® Multi-Position™ MRI to completely visualize ALL the anatomy components under their full weight load that are giving rise to the patient's pain, which the conventional recumbent MRI cannot do, assures that the surgical procedure chosen for his/her treatment will achieve the optimum outcome for the patient."

"In addition," continued Dr. Damadian, "I am very proud of the fact that it has been 7 years since FONAR has had a quarterly loss. This is something we have all worked very hard to achieve."

About FONAR

FONAR, The Inventor of MR Scanning™, is located in Melville, NY, was incorporated in 1978, and is the first, oldest and most experienced MRI company in the industry. FONAR introduced the world’s first commercial MRI in 1980, and went public in 1981. FONAR’s signature product is the FONAR UPRIGHT® Multi-Position™ MRI (also known as the Stand-Up® MRI), the only whole-body MRI that performs Position™ Imaging (pMRI™) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The FONAR UPRIGHT® MRI often detects patient problems that other MRI scanners cannot because they are lie-down and ”weightless” only scanners. The patient-friendly UPRIGHT® MRI has a near-zero patient claustrophobic rejection rate. As a FONAR customer states, “If the patient is claustrophobic in this scanner, they’ll be claustrophobic in my parking lot.” Approximately 85% of patients are scanned sitting while watching TV.

FONAR has new works-in-progress technology for visualizing and quantifying the cerebral hydraulics of the central nervous system, the flow of cerebrospinal fluid (CSF), which circulates throughout the brain and vertebral column at the rate of 32 quarts per day. This imaging and quantifying of the dynamics of this vital life-sustaining physiology of the body’s neurologic system has been made possible first by FONAR’s introduction of the MRI and now by this latest works-in-progress method for quantifying CSF in all the normal positions of the body, particularly in its upright flow against gravity. Patients with whiplash or other neck injuries are among those who will benefit from this new understanding.

FONAR’s substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging of all the gravity sensitive regions of the human anatomy, especially the brain, extremities and spine. It includes its newest technology for measuring the Upright cerebral hydraulics of the central nervous system. FONAR’s UPRIGHT® Multi-Position™ MRI is the only scanner licensed under these patents.

UPRIGHT® and STAND-UP® are registered trademarks and The Inventor of MR Scanning™, Full Range of Motion™, Multi-Position™, Upright Radiology™, The Proof is in the Picture™, True Flow™, pMRI™, Spondylography™, Dynamic™, Spondylometry™, CSP™, and Landscape™, are trademarks of FONAR Corporation.

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

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FONAR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

 

ASSETS

 

   December 31,
2017
  June 30,
2017
   $14,194   $10,140 
Accounts receivable – net   4,222    4,322 
Accounts receivable - related party   60    —   
Medical receivable – net   12,480    11,745 
Management and other fees receivable – net   20,268    18,594 
Management and other fees receivable – related medical practices – net   5,222    4,959 
Inventories   1,696    1,624 
           
Costs and estimated earnings in excess of billings on uncompleted contracts   736    736 
Prepaid expenses and other current assets   1,368    1,294 
Total Current Assets   60,246    53,414 
Deferred income tax asset   17,287    17,862 
Property and equipment - net   16,986    16,462 
Goodwill   3,985    3,927 
Other intangible assets - net   6,076    6,645 
Other Assets   603    453 
Total Assets  $105,183   $98,763 
           

 

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FONAR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

   December 31,
2017
  June 30,
2017
Current Liabilities:          
Current portion of long-term debt and capital leases  $95   $180 
Accounts payable   1,365    1,423 
Other current liabilities   6,662    7,203 
Unearned revenue on service contracts   4,520    4,642 
Unearned revenue on service contracts - related party   55    —   
Customer advances   898    788 
 Total Current Liabilities   13,595    14,236 
Long-Term Liabilities:          
Deferred income tax liability   332    332 
Due to related medical practices   227    227 
Long-term debt and capital leases, less current portion   323    337 
Other liabilities   711    721 
 Total Long-Term Liabilities   1,593    1,617 
 Total Liabilities   15,188    15,853 

 

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FONAR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

 

LIABILITIES AND STOCKHOLDERS' EQUITY (Continued)

 

   December 31, 2017 

June 30,

2017

STOCKHOLDERS' EQUITY:          
  Class A non-voting preferred stock $.0001 par value; 453 shares authorized at December 31, 2017 and June 30, 2017, 313 issued and outstanding at December 31, 2017 and June 30, 2017  $—     $—   
  Preferred stock $.001 par value; 567 shares authorized at December 31, 2017 and June 30, 2017, issued and outstanding – none   —      —   
  Common Stock $.0001 par value; 8,500 shares authorized at December 31, 2017 and June 30, 2017, 6,299 issued at December 31, 2017 and June 30, 2017; 6,288 outstanding at December 31, 2017 and June 30, 2017   1    1 
  Class B Common Stock (10 votes per share) $ .0001 par value; 227 shares authorized at December 31, 2017 and June 30, 2017, .146 issued and outstanding at December 31, 2017 and June 30, 2017   —      —   
  Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at December 31, 2017 and June 30, 2017, 383 issued and outstanding at December 31, 2017 and June 30, 2017   —      —   
Paid-in capital in excess of par value   179,131    179,131 
Accumulated deficit   (93,095)   (101,003)
Notes receivable from employee stockholders   (13)   (17)
Treasury stock, at cost - 12 shares of common stock at December 31, 2016 and June 30, 2016   (675)   (675)
Total Fonar Corporation Stockholder Equity   85,349    77,437 
Non controlling interests   4,646    5,473 
 Total Stockholders' Equity   89,995    82,910 
 Total Liabilities and Stockholders' Equity  $105,183   $98,763 

 

 

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FONAR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

   For the Three Months Ended
REVENUES 

December 31,

   2017  2016
Product sales – net  $276   $93 
Service and repair fees – net   2,352    2,356 
Service and repair fees – related parties - net   28    28 
Patient fee revenue, net of contractual allowances and discounts   9,537    8,657 
Provision for bad debts and bad debt expense for patient fee   (4,571)   (4,002)
Management and other fees – net   10,340    9,364 
Management and other fees – related medical practices – net   2,206    1,907 
Total Revenues – Net   20,168    18,403 
COSTS AND EXPENSES          
Costs related to product sales   246    (34)
Costs related to service and repair fees   753    683 
Costs related to service and repair fees – related parties   9    8 
Costs related to patient fee revenue   2,570    2,323 
Costs related to management and other fees   5,826    5,257 
Costs related to management and other fees – related medical practices   1,261    1,127 
Research and development   407    361 
Selling, general and administrative   3,286    4,069 
Total Costs and Expenses   14,358    13,794 
Income From Operations   5,810    4,609 
Interest Expense   (48)   (77)
Investment Income   58    49 
Other Expense   (5)   —   
Income Before (Provision)/Benefit for Income Taxes and Non Controlling Interests   5,815    4,581 
(Provision)/Benefit for Income Taxes   (575)   353 
Net Income   5,240    4,934 
Net Income - Non Controlling Interests   (1,051)   (692)
Net Income - Controlling Interests  $4,189   $4,242 
Net Income Available to Common Stockholders  $3,926   $3,971 
Net Income Available to Class A Non-Voting Preferred Stockholders  $196   $202 
Net Income Available to Class C Common Stockholders  $67   $69 
Basic Net Income Per Common Share Available to Common Stockholders  $0.62   $0.64 
Diluted Net Income Per Common Share Available to Common Stockholders  $0.61   $0.63 
Basic and Diluted Income Per Share-Class C Common  $0.17   $0.18 
Weighted Average Basis Shares Outstanding-Common Stockholders   6,287    6,158 
Weighted Average Diluted Shares Outstanding-Common Stockholders   6,415    6,286 
Weighted Average Basic Shares Outstanding – Class C Common   383    383 
Weighted Average Diluted Shares Outstanding – Class C Common   383    383 
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FONAR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

  

For the Six Months Ended

December 31,

   2017  2016
REVENUES      
Product sales – net  $439   $335 
Service and repair fees – net   4,616    4,708 
Service and repair fees – related parties - net   55    55 
Patient fee revenue, net of contractual allowances and discounts   18,190    17,481 
Provision for bad debts and bad debt expense for patient fee   (8,321)   (7,880)
Management and other fees – net   20,111    18,625 
Management and other fees – related medical practices – net   4,412    3,814 
Total Revenues – Net   39,502    37,138 
 COSTS AND EXPENSES          
Costs related to product sales   389    179 
Costs related to service and repair fees   1,533    1,339 
Costs related to service and repair fees – related parties   18    16 
Costs related to patient fee revenue   5,049    4,737 
Costs related to management and other fees   11,384    10,518 
Costs related to management and other fees – related medical practices   2,411    2,080 
Research and development   755    773 
Selling, general and administrative   7,367    8,135 
Total Costs and Expenses   28,906    27,777 
Income From Operations   10,596    9,361 
Interest Expense   (92)   (174)
Investment Income   104    97 
Other (Expense) Income   (7)   (3)
Income Before (Provision)/Benefit for Income Taxes and Non Controlling Interests   10,601    9,281 
(Provision)/Benefit for Income Taxes   (760)   153 
Net Income   9,841    9,434 
Net Income - Non Controlling Interests   (1,933)   (1,622)
Net Income - Controlling Interests  $7,908   $7,812 
Net Income Available to Common Stockholders  $7,413   $7,313 
Net Income Available to Class A Non-Voting Preferred Stockholders  $369   $372 
Net Income Available to Class C Common Stockholders  $126   $127 
Basic Net Income Per Common Share Available to Common Stockholders  $1.18   $1.19 
Diluted Net Income Per Common Share Available to Common Stockholders  $1.16   $1.17 
Basic and Diluted Income Per Share-Class C Common  $0.33   $0.33 
Weighted Average Basic Shares Outstanding-Common Stockholders   6,287    6,131 
Weighted Average Diluted Shares Outstanding-Common Stockholders   6,415    6,259 
Weighted Average Basic Shares Outstanding – Class C Common   383    383 
Weighted Average Diluted Shares Outstanding – Class C Common   383    383 

 

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The following information was filed by FONAR CORP on Tuesday, February 13, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Click a sentiment analysis snippet below from FONAR CORP's Management Discussions to find these positive and negative remarks within their 10-Q Quarterly report:
  • fonr_10q_2018-02-13_68_160
    Revenue - Geography
    Although the reduced reimbursements may not affect foreign demand, a lower number of sales in the aggregate could reduce economies of scale and consequently, profit margins.
  • fonr_10q_2018-02-13_70_171
    Revenue - Product
    If these physicians and other third parties were to reduce the number of patients they refer or discontinue referring patients, scan volumes could decrease, which would have the effect of reducing our net revenue, from both management and scanning fees, and operating margins.
  • fonr_10q_2018-02-13_43_106
    Financial - Earnings
    Cash provided by operating activities was attributable principally to net income of $9.8 million and depreciation and amortization of $2.0 million, offset by an increase in accounts, management fee receivables and medical receivables of $1.5 million and a decrease in other current liabilities of $608,000.
  • fonr_10q_2018-02-13_67_154
    Revenue - Product
    To date, the impact of these reductions has been countered by increasing scanning volume, thereby maintaining profitability in this business segment.
  • fonr_10q_2018-02-13_30_62
    Revenue - Product
    Nevertheless, the increased patient volume of the scanning centers we manage or own has enabled us to maintain a healthy profitability in spite of these challenges.
  • fonr_10q_2018-02-13_24_49
    Financial - Expense
    Interest expense in the first six months of fiscal 2018 decreased by 47.1% to $92,000 from $174,000 in the first six months of fiscal 2017.
  • fonr_10q_2018-02-13_54_133
    Other - Other
    Critical to our business plan are the improvement and expansion of the MRI facilities managed or owned by HMCA, and increasing the number of scans performed at those facilities.
  • fonr_10q_2018-02-13_23_225
    Financial - Expense
    Research and development expenses decreased by 2.3% to $755,000 for the first six months of fiscal 2018 from $773,000 for the first six months of fiscal 2017.
  • fonr_10q_2018-02-13_5_8
    Other - Other
    Effective July 1, 2015, the Company restructured the corporate organization of the management of diagnostic imaging centers segment of the business.
  • fonr_10q_2018-02-13_42_229
    Other - Other
    Cash and cash equivalents increased by 40.0% from $10.1 million at June 30, 2017 to $14.2 million at December 31, 2017.
  • fonr_10q_2018-02-13_46_111
    Other - Other
    Total liabilities decreased by 4.2% to $15.2 million at December 31, 2017 from $15.9 million at June 30, 2017.
  • fonr_10q_2018-02-13_46_112
    Other - Other
    Other current liabilities decreased by 7.5% to $6.7 million at December 31, 2017 from $7.2 million at June 30, 2017.
  • fonr_10q_2018-02-13_73_190
    Other - Other
    These factors and events could have a material adverse effect on our business, financial condition, and results of operations.
  • fonr_10q_2018-02-13_4_6
    Financial - Expense
    In terms of percentages, costs and expenses increased 4.1% from $27.8 million for the first six months of fiscal 2017 to $28.9 million for the first six months of fiscal 2018, while revenues increased 6.4%, from $37.1 million for the first six months of fiscal 2017 to $39.5 million for the first six months of fiscal 2018.
  • fonr_10q_2018-02-13_21_45
    Revenue - Product
    For the first six months of fiscal 2018, our consolidated net revenues increased by 6.4% to $39.5 million from $37.1 million for the first six months of fiscal 2017, and total costs and expenses increased by 4.1% to $28.9 million from $27.8 million for the first six months of fiscal 2018 and for the first six months of fiscal 2017 respectively.
  • fonr_10q_2018-02-13_26_51
    Other - Other
    Net management fee and medical receivables increased by 7.6% to $38.0 million at December 31, 2017 from $35.3 million at June 30, 2017 as a result of slower collections.
  • fonr_10q_2018-02-13_3_3
    Revenue - Product
    The revenue increase of 6.4%, from $37.1 million for the first six months of fiscal 2017 to $39.5 million for the first six months of fiscal 2018, was primarily due to an increases in net management fees of $2.1 million, from $22.4 million for the first six months of fiscal 2017 to $24.5 million for the first six months of fiscal 2018.
  • fonr_10q_2018-02-13_22_47
    Financial - Expense
    Selling, general and administrative expenses decreased to $7.4 million in the first six months of fiscal 2018 from $8.1 million in the first six months of fiscal 2017.
  • fonr_10q_2018-02-13_22_48
    Financial - Expense
    The compensatory element of stock issuances, which is included in selling, general and administrative expenses, decreased to $0 for the first six months of fiscal 2018 from $26,814 for the six months of fiscal 2017.
  • fonr_10q_2018-02-13_51_128
    Financial - Income
    Among other changes, the Act reduces the US corporate income tax rate to 21% effective January 1, 2018.
  • fonr_10q_2018-02-13_15_40
    Revenue - Product
    The percentage of our revenues derived from our diagnostic facilities management segment relative to the percentage of our revenues derived from our medical equipment segment increased slightly to 87.1% for the first six months of fiscal 2018, from 86.2% for the first six months of fiscal 2017.
  • fonr_10q_2018-02-13_6_19
    Other - Other
    Although we believe that our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this Report will prove to be accurate.
  • fonr_10q_2018-02-13_51_129
    Financial - Income
    Because the Act became effective mid-way through the Companys tax year, the Company will have a US statutory income tax rate of 27.7% for the fiscal 2018, and will have a 21% US statutory income tax rate for fiscal years thereafter.
  • fonr_10q_2018-02-13_62_147
    Other - Other
    We carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15e and 15d-15e under the Securities Exchange Act of 1934, as amended the Exchange Act .
  • fonr_10q_2018-02-13_25_226
    Other - Other
    Inventories increased to $1.7 million at December 31, 2017 from $1.6 million at June 30, 2017.
  • fonr_10q_2018-02-13_12_30
    Revenue - Geography
    There were approximately $417,000 in foreign revenues for the first six months of fiscal 2018 as compared to approximately $398,000 in foreign revenues for the first six months of fiscal 2017, representing an increase in foreign revenues of 4.8%.
  • fonr_10q_2018-02-13_15_39
    Revenue - Product
    HMCA revenues increased in the first six months of fiscal 2018 by 7.3% to $34.4 million from $32.0 million for the first six months of fiscal 2017.
  • fonr_10q_2018-02-13_9_21
    Revenue - Product
    Revenues from MRI product sales increased to $439,000 for the first six months of fiscal 2018 from $335,000 for the first six months of fiscal 2017.
  • fonr_10q_2018-02-13_54_134
    Other - Other
    In addition, our business plan calls for a continuing commitment to providing our customers with enhanced equipment service and maintenance capabilities and delivering state-of-the-art, innovative and high quality equipment and upgrades at competitive prices.
  • fonr_10q_2018-02-13_48_117
    Other - Other
    This resulted from an increase in current assets $53.4 million at June 30, 2017 as compared to $60.2 million at December 31, 2017, and a decrease in current liabilities from $14.2 million at June 30, 2017 to $13.6 million at December 31, 2017.
  • fonr_10q_2018-02-13_52_131
    Other - Other
    The Companys gross deferred tax assets and liabilities will be revalued form 35% to 21% with a corresponding offset to the valuation allowance and any potential other taxes arising due to the Tax Act will result in reductions to its net operating loss carryforward and valuation allowance.
  • fonr_10q_2018-02-13_13_36
    Revenue - Product
    Generally, the revenues from a scanner sale are recognized in a fiscal quarter or quarters following the quarter in which the sale was made.
  • fonr_10q_2018-02-13_46_115
    Other - Other
    Customer deposits increased from $788,000 at June 30, 2017 to $898,000 at December 31, 2017 as a result of an increase in services performed.
  • fonr_10q_2018-02-13_21_46
    Financial - Income
    As a result, our operating income increased to $10.6 million in the first six months of fiscal 2018 as compared to $9.4 million in the first six months of fiscal 2017.
  • fonr_10q_2018-02-13_50_121
    Financial - Income
    The Companys effective income tax rate is based on expected income, statutory rates and tax planning opportunities available in the various jurisdictions in which it operates.
  • fonr_10q_2018-02-13_73_187
    Revenue - Product
    A shift in payor mix from managed care and other private payors to government payors or an increase in the number of uninsured patients may result in a reduction in the rates of reimbursement or an increase in uncollectible receivables or uncompensated care, with a corresponding decrease in net revenue.
  • fonr_10q_2018-02-13_4_5
    Revenue - Product
    While our revenues increased, our costs and expenses increased at a smaller amount , resulting in our operating income increasing to $10.6 million for the six months ended December 31, 2017 as compared to $9.4 million for the six months ended December 31, 2016.
  • fonr_10q_2018-02-13_13_33
    Revenue - Product
    Revenues recognized in a particular quarter do not necessarily reflect new orders or progress payments made by customers in that quarter.
  • fonr_10q_2018-02-13_67_153
    Other - Other
    Our scanning center clients and the Florida facilities owned by HMCA are experiencing lower reimbursement rates from Medicare, other government programs and private insurance companies.
  • fonr_10q_2018-02-13_26_52
    Revenue - Product
    The slower collections were primarily due to an increase in no-fault and workers compensation revenue, which typically takes longer to collect and the additional of the new site which was opened in April 2017.
  • fonr_10q_2018-02-13_38_94
    Other - Other
    The UCLA study showed the superior ability of the Fonar Upright MRI to detect spine pathology, including spondylolisthesis, disc herniations and disc degeneration, as compared to visualizations of the spine produced by traditional single position static MRIs.
  • fonr_10q_2018-02-13_68_159
    Revenue - Product
    With lower revenue projections, fewer prospective customers will be able to operate, and others are likely to demand lower prices for scanners.
  • fonr_10q_2018-02-13_12_31
    Revenue - Product
    We do not regard this as a material trend, but as part of a normal although sometimes volatile variation resulting from low volumes of foreign sales.

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Exhibit 31.1 - CERTIFICATION

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Exhibit 32.1 - CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

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  • Form Type: Quarterly
  • Number of times amended: 0
  • Accession Number: 0000355019-18-000006
  • Submitted to the SEC: Tuesday, February 13, 2018 12:59:56 PM EST
  • Accepted by the SEC: Tuesday, February 13, 2018
  • Period ending: December 2017
  • Industry: Electromedical And Electrotherapeutic Apparatus