v3.26.1
SEGMENT AND RELATED INFORMATION
 9 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT AND RELATED INFORMATION

NOTE 9 - SEGMENT AND RELATED INFORMATION

 

The Company operates in two reportable segments - manufacturing and the service of medical equipment and management of diagnostic imaging centers. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as disclosed in the Company’s 10-K as of June 30, 2025. All inter segment sales are market-based. The Company evaluates performance based on income or loss from operations.

 

Our chief operating decision maker (“CODM”), who is also our CEO, evaluates the financial performance of our segments based upon their respective revenue and segmented internal profit and loss statements prepared on a basis not consistent with GAAP. The CODM considers actual to budget and current year actual to prior year actual for revenue and other profit and loss measures on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.

 

Summarized financial information concerning the Company’s reportable segments is shown in the following table:

 

                       
    Manufacturing and Servicing of Medical   Management of Diagnostic Imaging    
Three months ended March 31, 2026   Equipment   Centers   Totals
Net revenues from external customers   $ 2,282     $ 24,190     $ 26,472  
Cost of Sales                        
Salaries and wages     909       5,465       6,374  
Rent expense     —       1,233       1,233  
Other Cost of sales expenses**     538       7,086       7,624  
Total Cost of sales   $ 1,447     $ 13,784     $ 15,231  
Research and development                        
Salaries and wages     194       —       194  
Other research and development costs**     230       —       230  
Total Research and development costs   $ 424     $ —     $ 424  
Selling, general and administrative expenses                        
Salaries and wages     443       3,145       3,588  
Rent expense     313       18       331  
Other selling, general and administrative expenses**     2,323       2,131       4,454  
Total Selling, general and administrative expenses   $ 3,079     $ 5,294     $ 8,373  
Total costs and expenses   $ 4,950     $ 19,078     $ 24,028  
(Loss) Income from operations   $ (2,668 )   $ 5,112     $ 2,444  
Investment income     20       343       363  
Other income     16       (3 )     13  
(Loss) Income before provision for income taxes   $ (2,632 )   $ 5,452     $ 2,820  
Provision for income taxes     (379 )     (113 )     (492 )
Net (Loss) income   $ (2,253 )   $ 5,339     $ 2,328  
Intersegment net revenues *     307       —       307  
Depreciation and amortization     55       1,051       1,106  

 

 

                         
    Manufacturing and Servicing of Medical   Management of Diagnostic Imaging    
Three months ended March 31, 2025   Equipment   Centers   Totals
Net revenues from external customers   $ 2,395     $ 24,770     $ 27,165  
Cost of Sales                        
Salaries and wages     924       4,848       5,772  
Rent expense     —       1,224       1,224  
Other Cost of sales expenses**     635       7,440       8,075  
Total Cost of sales   $ 1,559     $ 13,512     $ 15,071  
Research and development                        
Salaries and wages     192       —       192  
Other research and development costs**     249       —       249  
Total Research and development costs   $ 441     $ —     $ 441  
Selling, general and administrative expenses                        
Salaries and wages     668       2,905       3,573  
Rent expense     313       22       335  
Other selling, general and administrative expenses**     787       3,296       4,083  
Total Selling, general and administrative expenses   $ 1,768     $ 6,223     $ 7,991  
Total costs and expenses   $ 3,768     $ 19,735     $ 23,503  
(Loss) Income from operations   $ (1,373 )   $ 5,035     $ 3,662  
Investment income     25       438       463  
Other income (expense)     12       (7 )     5  
(Loss) Income before provision for income taxes   $ (1,336 )   $ 5,466     $ 4,130  
Provision for income taxes     (902 )     (104 )     (1,006 )
Net (Loss) income   $ (2,238 )   $ 5,362     $ 3,124  
Intersegment net revenues *     294       —       294  
Depreciation and amortization     52       1,186       1,238  

 

*Amounts eliminated in consolidation

** Other segment costs include supplies, professional fees, marketing expenses, repairs and maintenance and other operational costs.

 

FONAR CORPORATION AND SUBSIDIARIES

 

                         
    Manufacturing and Servicing of Medical   Management of Diagnostic Imaging    
Nine months ended March 31, 2026   Equipment   Centers   Totals
Net revenues from external customers   $ 7,191     $ 70,871     $ 78,062  
Cost of Sales                        
Salaries and wages     2,808       15,461       18,269  
Rent expense     —       3,778       3,778  
Other Cost of sales expenses**     1,468       23,165       24,633  
Total Cost of sales   $ 4,276     $ 42,404     $ 46,680  
Research and development                        
Salaries and wages     610       —       610  
Other research and development costs**     709       —       709  
Total Research and development costs   $ 1,319     $ —     $ 1,319  
Selling, general and administrative expenses                        
Salaries and wages     1,492       8,600       10,092  
Rent expense     939       54       993  
Other selling, general and administrative expenses**     4,507       5,833       10,340  
Total Selling, general and administrative expenses   $ 6,938     $ 14,487     $ 21,425  
Total costs and expenses   $ 12,533     $ 56,891     $ 69,424  
(Loss) Income from operations   $ (5,342 )   $ 13,980     $ 8,638  
Investment income     61       1,207       1,268  
Other income (expense)     47       (9 )     38  
(Loss) Income before provision for income taxes   $ (5,234 )   $ 15,178     $ 9,944  
Provision for income taxes     (2,163 )     (244 )     (2,407 )
Net (Loss) income   $ (7,397 )   $ 14,934     $ 7,537  
Intersegment net revenues *     919       —       919  
Depreciation and amortization     149       3,298       3,447  
Total identifiable assets   $ 34,007     $ 185,215     $ 219,222  

 

* Amounts eliminated in consolidation

** Other segment costs include supplies, professional fees, marketing expenses, repairs and maintenance and other operational costs.

 

                         
    Manufacturing and Servicing of Medical   Management of Diagnostic Imaging    
Nine months ended March 31, 2025   Equipment   Centers   Totals
Net revenues from external customers   $ 6,382     $ 70,693     $ 77,075  
Cost of Sales                        
Salaries and wages     2,736       14,419       17,155  
Rent expense     —       3,601       3,601  
Other Cost of sales expenses**     1,390       23,046       24,436  
Total Cost of sales   $ 4,126     $ 41,066     $ 45,192  
Research and development                        
Salaries and wages     561       —       561  
Other research and development costs**     563       —       563  
Total Research and development costs   $ 1,124     $ —     $ 1,124  
Selling, general and administrative expenses                        
Salaries and wages     1,701       8,216       9,917  
Rent expense     939       68       1,007  
Other selling, general and administrative expenses**     2,200       6,931       9,131  
Total Selling, general and administrative expenses   $ 4,840     $ 15,215     $ 20,055  
Total costs and expenses   $ 10,090     $ 56,281     $ 66,371  
(Loss) Income from operations   $ (3,708 )   $ 14,412     $ 10,704  
Investment income     83       1,543       1,626  
Other income (expense)     38       (21 )     17  
(Loss) Income before provision for income taxes   $ (3,587 )   $ 15,934     $ 12,347  
Provision for income taxes     (2,796 )     (222 )     (3,018 )
Net (Loss) income   $ (6,383 )   $ 15,712     $ 9,329  
Intersegment net revenues *     881       —       881  
Depreciation and amortization     157       2,184       2,341  
Total identifiable assets   $ 33,577     $ 181,346     $ 214,923  

 

* Amounts eliminated in consolidation

** Other segment costs include supplies, professional fees, marketing expenses, repairs and maintenance and other operational costs.