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<SEC-DOCUMENT>0000355019-06-000009.txt : 20060511
<SEC-HEADER>0000355019-06-000009.hdr.sgml : 20060511
<ACCEPTANCE-DATETIME>20060511171726
ACCESSION NUMBER:		0000355019-06-000009
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060331
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
FILED AS OF DATE:		20060511
DATE AS OF CHANGE:		20060511

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FONAR CORP
		CENTRAL INDEX KEY:			0000355019
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				112464137
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10248
		FILM NUMBER:		06831185

	BUSINESS ADDRESS:	
		STREET 1:		110 MARCUS DR
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		6316942929

	MAIL ADDRESS:	
		STREET 1:		110 MARCUS DRIVE
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>k8-60511.txt
<TEXT>
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

         Pursuant to Section 13 or 15(d) of the Securities Act of 1934

     Date of Report (Date of earliest event reported): May 10, 2006

                                FONAR CORPORATION
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


    Delaware                      0-10248                     11-2464137
- ---------------             ----------------             -------------------
(State or other             (Commission File              (I.R.S. Employer
jurisdiction of                  Number)                 Identification No.)
incorporation)

                                110 Marcus Drive
                            Melville, New York 11747
                                 (631) 694-2929
              ---------------------------------------------------
               (Address, including zip code, and telephone number
                   of registrant's principal executive office)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ]   Written communications pursuant to Rule 425 under the Securities Act
      (17 CFR 230.425)
[ ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act
      (17 CFR 240.14a-12)
[ ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))
[ ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c)

Item 2.02  Results of Operations and Financial Condition

     On May 11, 2006, on the day following the filing of our Form 10-Q for the
fiscal quarter ended March 31, 2006, we issued a press release concerning the
results of operations and financial condition of the company.  The text of the
press release is filed as an exhibit to this Form 8-K.

Item 3.01(a) Notice of Delisting or failure to Satisfy a Continued Listing Rule
or Standard; Transfer of Listing.

We received written notification from the Nasdaq Stock Market on December 22,
2005 that the bid price of our common stock for 30 consecutive trading days had
closed below the minimum $1.00 per share required for continued listing under
Nasdaq Marketplace Rule 4310(c)(4).  Pursuant to Nasdaq Marketplace Rule
4310(c)(8)(D), the Company was provided an initial period of 180 calendar days,
or until June 20, 2006, to regain compliance.  The Company will achieve
compliance with the Rule if at any time before June 20, 2006 the bid price of
the Company's common stock closes at $1.00 per share or more for a minimum of
10 consecutive business days.

If the Company's stock does not achieve this level of performance by June 20,
2006, the Staff will determine whether the Company meets the Nasdaq Capital
Market initial listing criteria as set forth in Marketplace Rule 4310(c),
except for the bid price requirement.  FONAR currently complies with these
requirements.  Such being the case, the Company will be granted an additional
180 calendar days to comply.  Following the second 180 day compliance period,
the Company will still have the right to appeal delisting if its stock price
has not recovered.

Exhibits

      99. Press Release dated May 11, 2006

                                   SIGNATURES

      Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                                FONAR CORPORATION
                                                (Registrant)

                                                By: /s/ Raymond Damadian
                                                    Raymond Damadian
                                                    President and Chairman

Dated:   May 11, 2006





</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>x998k.txt
<TEXT>
                                FONAR CORPORATION

Fonar MRI news @ aol . com                           The Inventor of MR Scanning
For    Immediate   Release                           An    ISO    9001   Company

Contact:    Daniel Culver,                           110       Marcus      Drive
Director of Communications                           Melville,    N.Y.     11747
Web site:    www.fonar.com                           Tel:     (631)     694-2929
Email: invest @ fonar. com                           Fax:     (631)     390-9540

Contact:     Jordan Darrow                           Tel:     (631)     367-1866
Darrow  Associates,   Inc.                           jdarrow   @   optonline.net
================================================================================

          FONAR ANNOUNCES FISCAL 2006 THIRD QUARTER FINANCIAL RESULTS

MELVILLE, NEW YORK, May 11, 2006 - FONAR Corporation (NASDAQ-FONR), The Inventor
of MR Scanning(TM),  today announced  financial results for the third quarter of
fiscal 2006, which ended March 31, 2006.

Revenues  for the third  quarter of fiscal 2006 were $7.1  million,  compared to
$25.3 million in the third quarter of 2005.  Overall  revenues  attributable  to
product  sales were $1.7  million in the third  quarter,  as  compared  to $17.3
million in the third quarter of 2005 and $4.2 million in product sales  reported
for the three month period ended  December  31, 2005.  The  reduction in product
revenue  recognition  was primarily due to increased  marketing and  advertising
pressure from our competitors attempting to minimize the unique medical benefits
of the FONAR  Upright(TM)  MRI,  coupled with a decline in sales  secondary to a
short interruption in FONAR's  advertising  (restarted Feb. 23, 2006). FONAR had
been  experimenting  with the  impact it could  achieve  with its own  direct to
consumer (DTC) advertising program.  FONAR is now confident that its advertising
program has been  successful,  having  generated 31 sales  leads,  approximately
1,000  consumer  phone calls and 100 phone calls from patients who have suffered
from failed back surgery. Our competitors may not make a similar product because
of FONAR's patents.

"Our  truly   impressive   results  last  year  were  countered  by  our  large,
multinational  competitors  stepping up their marketing,  in an attempt to blunt
our market  share gains and  diminish  recognition  within the MRI  community of
FONAR's superior  Upright(TM) MRI imaging  technology,"  said Raymond  Damadian,
M.D.,  president and chairman of FONAR. "For example,  spine surgery trade shows
like NASS and AAOS had only a negligible  showing in 2003 by these  competitors,
when we began  exhibiting  our FONAR  Upright(TM)  MRI scanner.  This year their
response  was to send large  exhibits to the same trade shows,  promoting  their
standard imaging equipment."

"We have put in place a six point marketing  strategy and have already seen very
positive  results,"  continued Dr. Damadian.  "The six point marketing  strategy
includes initiatives in the following areas:  Advertising Campaigns;  Trade Show
and Industry  Association Event  Participation;  Third Party Endorsements in the
Form of Medical Research and Professional Testimonials; Direct Sales Efforts for
U.S. Market Penetration and the Enlistment of Distributors both domestically and
internationally to multiply the size of FONAR's sales force.

"The advertising campaign is proving to be very successful,  based on the number
of referrals to MRI centers, new scanner sales leads, and the outcry of patients
who have experienced failed spine surgery. We have been receiving phone calls to
the 1-888-Need-MRI  telephone number from all over the country with many of them
coming  in  close  proximity  to our  existing  customers,  which  benefit  them
directly," said Dr. Damadian.

To  see  a  U.S.  map  of  phone  calls  and  FONAR   Upright(TM)  MRIs,  go  to
www.fonar.com/phonecallmap.htm.   To   see   the   latest   commercial,   go  to
www.fonar.com/movies/wifehelps.asf

"The failed back surgery  syndrome,  as it is better known in the  industry,  is
positioning the FONAR Upright(TM) MRI as the scanner of choice for surgeons, who
in many cases drive the decision making process for purchases by imaging centers
and hospitals," added Dr. Damadian.

"To this end, we are pleased to have recently announced a milestone for FONAR in
its penetration of the U.S.  hospital market.  In recent weeks, we announced two
sales of the FONAR Upright(TM) MRI to hospitals,  one to a substantial  hospital
chain and the second to a prestigious hospital in Eastern Tennessee.  We believe
continued success in the hospital segment,  as well as our traditional  scanning
center market,  is being achieved  because FONAR's  Upright(TM) MRI is providing
important  medical  benefits that cannot be achieved by any other MRI products,"
said Dr. Damadian.

Service and repair revenues in the most recently  completed quarter increased by
49% to a record $2.3 million from $1.6 million in the fiscal 2005 third  quarter
and $2.1 million in the second quarter of fiscal 2006.  This  improvement is the
result of the growing base of over 100 units in the United  States and overseas.
Revenues  attributable to FONAR's physician and diagnostic  services  management
segment (HMCA) were $3.1 million,  as compared to $5.9 million in the prior year
period and $3.0 million in the second  quarter of fiscal 2006.  This decrease in
revenues from HMCA on a year-over-year basis can be substantially  attributed to
the sale of HMCA's  physical  therapy  and  rehabilitation  facility  management
business in July 2005. Absent the contribution of revenues from sold businesses,
HMCA achieved record revenues in the fiscal 2006 third quarter.

The net loss for the third quarter of fiscal 2006 was $(7.4) million, or $(0.07)
loss per common share (basic and  diluted),  as compared to a net loss of $(.48)
million,  or $(0.00)  loss per common  share  (basic and  diluted)  in the third
quarter of fiscal 2005. The Company's loss in the current  quarter,  as compared
to the prior year  period,  primarily  reflects  the lower level of revenue from
product  sales  and the  reduction  of  revenues  from the sale of the  physical
therapy and rehabilitation businesses.

The Company's cash and marketable securities position at March 31, 2006 was $9.9
million,  a reduction of $5 million from the end of the second fiscal quarter of
2006. At the end of the fiscal 2006 third  quarter FONAR has a positive  working
capital position of $21.7 million.

Further  commenting on the Company's  third quarter  performance,  Dr.  Damadian
continued:  "The popularity of our FONAR  Upright(TM)  MRI has been  increasing.
There have been over 500,000 scans performed on the FONAR  Upright(TM) MRI since
the  product  was  launched,  with a record  number of scans  taken in the third
quarter of fiscal 2006.  As the  exclusive  owner of the  technology  because of
FONAR's abundant patent portfolio on the Upright(TM) MRI technology, we are in a
unique position in the MRI industry. Patients and doctors alike are awakening to
the superiority of our technology and are increasingly demanding the product."

"Industry  professionals,  including respected surgeons, are now openly praising
the FONAR Upright(TM) MRI. The benefits of Upright(TM)  Imaging are increasingly
being viewed as a medical  necessity  for the proper  treatment of patients with
back  pain.  The case is being  made that  without  the FONAR  Upright(TM)  MRI,
surgeons are in jeopardy of achieving  sub-optimal results. We believe awareness
of this important message will stimulate demand for FONAR's  Upright(TM) MRI. To
this end, we continue to focus on building a strong  sales force in the U.S. and
have been exploring alternatives for adding domestic distribution partners. With
over 10 million MRI scans of the spine  performed  each year and a rough average
of 2000  patients  per  scanner  per year,  there would be a need for 5000 FONAR
Upright(TM) MRIs, many more than the 129 sold to date," said Dr. Damadian.

FONAR  invites the public to a Company  Report of its Third  Quarter  Results at
11:00  AM  Eastern  time  today,  May 11.  Listeners  may  listen  to a Web cast
(www.fonar.com/conference_calls.htm)  or join the conference by dialing 800-289-
0544  (domestic)  or  913-981-5533  (international);   no  reservation  code  is
required.  Alternatively,  the  conference  call will be  broadcast  live on the
Internet  via the  Investor  Relations  section  of the  Company's  Web  site at
www.fonar.com/investor.htm.  Listeners  should use these access methods about 10
minutes prior to the start time.

For  those  unable  to  attend  the live  results  broadcast,  a replay  will be
available  beginning  approximately one hour after the event. Replay information
will  be  posted  on the  FONAR  web  site  (www.fonar.com/conference_calls.htm)
following  the  conclusion  of  the  live  broadcast.  There  is no  charge  for
participants to access the live broadcast or replay.

About FONAR

FONAR(R)  was  incorporated  in  1978,  making  it the  first,  oldest  and most
experienced MRI manufacturer in the industry. FONAR introduced the world's first
commercial MRI in 1980, and went public in 1981. Since its inception,  FONAR has
installed  hundreds  of MRI  scanners  worldwide.  Their  stellar  product  line
includes the FONAR  UPRIGHT(TM)  MRI (also known as the  Stand-Up(TM)  MRI), the
only whole-body MRI that performs Position(TM) 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(TM)
MRI often sees the patient's problem that other scanners cannot because they are
lie-down   only.   With  nearly  one  half   million   patients   scanned,   the
patient-friendly FONAR UPRIGHT(TM) MRI has a near zero claustrophobic  rejection
rate  by  patients.  A  radiologist  said,  "FONAR  UPRIGHT(TM)  MRI  - No  More
Claustrophobia - The Tunnel Is Gone." As another 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 they watch
a 42" flat screen TV.  FONAR's  latest MRI scanner is the FONAR 360, a room-size
recumbent scanner that optimizes openness while facilitating physician access to
the  patient.  FONAR  is  headquartered  on  Long  Island,  New  York,  and  has
approximately 400 employees.

- --------------------------------------------------------------------------------

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    (000's omitted except for per share data)

                                For the Three Months      For the Nine Months
                                  Ended March 31,           Ended March 31,
                                  2006       2005            2006        2005
                                ---------   ---------      ---------  ----------
Revenues                        $  7,103    $ 25,330       $ 27,797    $ 79,897
NET (LOSS) INCOME               $( 7,357)   $   (480)      $(21,031)   $  1,447
Basic & Diluted (Loss)
Earnings per Common Share         $(0.07)       -            $(0.19)      $0.01

- --------------------------------------------------------------------------------

The Inventor of MR  Scanning(TM),  Stand-Up(TM)  MRI, True  Flow(TM) MRI,  FONAR
UPRIGHT(TM) MRI,  Position(TM) MRI, PMRI(TM) and The Proof is in the Picture(TM)
are trademarks of FONAR.

Be  sure to visit FONAR's Web site for Company product and investor information:
                                  www.fonar.com

                                       ###

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
filings with the Securities and Exchange Commission.
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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