<SEC-DOCUMENT>0000355019-13-000014.txt : 20130516
<SEC-HEADER>0000355019-13-000014.hdr.sgml : 20130516
<ACCEPTANCE-DATETIME>20130516144151
ACCESSION NUMBER:		0000355019-13-000014
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20130515
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20130516
DATE AS OF CHANGE:		20130516

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:		13850758

	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>fonar_8-k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Courier New, Courier, Monospace; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Pursuant to Section 13 or 15(d) of the Securities
Act of 1934</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Date of Report (Date of earliest event reported):
May 15, 2013</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Courier New, Courier, Monospace; margin: 0; text-align: center"><B>FONAR CORPORATION</B></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">______________________________________________________</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: 0.5in">(Exact name of registrant
as specified in its charter)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 21%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">Delaware</FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">0-10248</FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 25%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">11-2464137</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">(State or other jurisdiction of incorporation)</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">(Commission File Number)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">(I.R.S. Employer Identification No.)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">110 Marcus Drive</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Melville, New York 11747</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">(631) 694-2929</P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">(Address, including zip code, and telephone
        number of registrant's principal executive office)</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify">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
(see General Instruction A.2. below):</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Written communications pursuant
to Rule 425 under the Securities Act 17 CFR 230.425)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">Item 2.02(a) Results of Operations and Financial Condition.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify">We reported the results of operations and
financial condition of the Company for the fiscal quarter ended March 31, 2013 in a press release dated May 15, 2013.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">Exhibits</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in">99.1 Press Release dated May 15, 2013</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">SIGNATURES</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 61%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 39%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">FONAR CORPORATION</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">(Registrant)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">By: /s/ Raymond Damadian</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 17.1pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">Raymond Damadian</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 17.1pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">President and Chairman</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">Dated: May 16, 2013</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>fonar_exhibit-99.htm
<DESCRIPTION>FONAR PRESS RELEASE
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0.9pt 0 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0.9pt 0 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0.9pt 0 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; border-top: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 14pt"><FONT STYLE="font-size: 14pt"><B><I>NEWS</I></B></FONT></TD>
    <TD STYLE="width: 29%; border-top: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 14pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="width: 41%; border-top: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 14pt"><B>Fonar
    Corporation</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 12pt">For Immediate Release</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 12pt">The Inventor of MR Scanning&trade;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 12pt">Contact: Daniel Culver</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 12pt">An ISO 9001 Company</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 12pt">Director of Communications</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 12pt">Melville, New York 11747</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 12pt">E-mail: investor@fonar.com</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 12pt">Phone: (631) 694-2929</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 12pt">www.fonar.com</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 12pt">Fax: (631) 390-1709</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FONAR Announces Fiscal 2013 3rd Quarter &amp;
Nine Month Earnings Report</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Total Assets Double, 3rd Quarter Revenues
Increase 22% </B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>7th Straight Quarter of $1.5 Million of Net
Income</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">MELVILLE, NEW YORK, May 15, 2013 &ndash; FONAR
Corporation (NASDAQ-FONR), The Inventor of MR Scanning&trade;, reported its 3rd quarter fiscal 2013 and nine month financial results
today, for the period ended March 31, 2013. The Company&rsquo;s two industry segments are: Development, manufacturing and servicing
of the UPRIGHT&reg; Multi-Position&trade; MRI, and management of 23 Stand-Up&reg; MRI, (UPRIGHT&reg; MRI) centers.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Third Quarter Highlights</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter the Company&rsquo;s subsidiary,
HMCA, 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). HMCA contributed $20.2 million to HDM and the group of outside investors contributed
$19.8 million for its non-controlling membership interest.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 5, 2013, HDM purchased from Health
Diagnostics, LLC and certain of its subsidiaries (HD), a business managing 12 Stand-Up&reg; MRI centers and two other scanning
centers located in the states of New York and Florida.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">With the purchase of HD, the Company increased
total assets to $73.3 million at March 31, 2013. This compares to total assets of $33.6 million at June 30, 2012, an increase of
118%. Meanwhile, total liabilities increased to $38.3 million at March 31, 2013 as compared to $22.5 million on June 30, 2012,
an increase of 70%. Stockholder&rsquo;s equity increased to $35.0 million at March 31, 2013 from $11.1 million on June 30, 2012,
an increase of 216%.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">FONAR continued on its surge of profitable
quarters where net income was greater than $1.5 million, climbing to seven straight quarters. The Company has had 13 straight quarters
of income from operations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenues increased 22% to $11.6 million for
the quarter ended March 31, 2013, an increase of 21% from $9.6 million for the preceding quarter ending December 31, 2012. The
revenues for this quarter are the largest quarterly revenue since the Nation&rsquo;s 2008 financial crisis. Approximately $2.8
million of revenue was from the acquisition of HD.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="margin: 0"></P>

<P STYLE="margin: 0; text-indent: 0.5in">&nbsp;</P>

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    <TD STYLE="vertical-align: top; width: 35%; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 38%; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0.5in">&nbsp;<FONT STYLE="font: 18pt Arial, Helvetica, Sans-Serif"><B>FONAR</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 27%; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><BR CLEAR="ALL">
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Statement of Operations Items </U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Net income for the quarters ended March 31,
2013 and March 31, 2012 was $1.6 million. Net income for the nine months ended March 31, 2013 was $5.0 million, as compared to
$5.1 million for the nine-month period ended March 31, 2012. Net income for the quarter ended March 31, 2013 included only 3 weeks
of the net income of HDM which was acquired on March 5, 2013.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Income from operations for the quarters ended
March 31, 2013 and March 31, 2012, was $1.6 million. Income from operations for the nine months ended March 31, 2013, was $5.2
million, as compared to $5.3 million, for the nine-month period ended March 31, 2012.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total revenues, for the quarter ended March
31, 2013, increased 22% to $11.6 million, as compared to the quarter ended March 31, 2012, when total revenues were $9.5 million.
Total revenues, for the nine months ended March 31, 2013, increased 8% to $30.8 million, as compared to the nine months ended March
31, 2012, when total revenues were $28.5 million.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic net income per common share for the quarter
ended March 31, 2013, was $0.17, as compared to $0.21 for the quarter ended March 31, 2012. Diluted net income per common share
for the quarter ended March 31, 2013, was $0.17, as compared to $0.20 for the quarter ended March 31, 2012.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic net income per common share for the nine
months ended March 31, 2013, was $0.61, as compared to $0.71 for the nine months ended March 31, 2012. Diluted net income per common
share for the nine months ended March 31, 2013, was $0.60, as compared to $0.69 for the nine months ended March 31, 2012.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenues from the HMCA management and other
fees segment which manages the FONAR UPRIGHT&reg; Multi-Position&trade; MRI diagnostic imaging centers, increased 42% to $7.4 million
for the three months ended March 31, 2013, from $5.2 million for the three-month period ended March 31, 2012. In addition, revenues
from a new category called Patient Revenue &ndash; Net were $965,000. Patient revenue represents revenues generated by the acquisition
of HD on March 5, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Costs related to HMCA management and other
fees segment for the three months ended March 31, 2013, were $3.5 million. For the three-month period ended March 31, 2012, costs
were $3.3 million. Costs related to patient revenue - net were $791,000 for the quarter ended March 31, 2013.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Balance Sheet Items</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total assets doubled for the quarter ended
March 31, 2013 to $73.3 million, a 118% increase, as compared to $33.6 million at June 30, 2012.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total liabilities at March 31, 2013 were $38.3
million, a 70% increase as compared to $22.5 million at June 30, 2012.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total current assets at March 31, 2013 were
$39.7 million, a 54% increase as compared to $25.9 million at June 30, 2012.</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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    <TD STYLE="vertical-align: bottom; width: 27%; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Page 3 of 9</FONT></TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At March 31, 2013, total cash and cash equivalents
were $9.2 million, as compared to $12.0 million at June 30, 2012. This $2.8 million reduction was primarily due to the $6.2 million
used in the acquisition of HDM.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total current liabilities at March 31, 2013
were $24.3 million, a 15% increase as compared to $21.1 million at June 30, 2012.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Significant Events</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company will hold its annual meeting on
June 24, 2013. Dr. Raymond Damadian, president and chairman of FONAR Corporation, has issued his annual shareholder letter which
can be seen on the Company&rsquo;s Web site at www.fonar.com/shareholder_letter.htm.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 5, 2013, the Company and its subsidiary,
Health Management Corporation of American (HMCA), acquired a majority interest (50.5%) in a newly formed limited liability company,
Health Diagnostics Management (HDM). Prior to the acquisition, HMCA was managing 11 STAND-UP&reg; MRI diagnostic centers &ndash;
8 in New York and 3 in Florida, collectively completing 45,000 scans in 2012. In one giant step, HMCA grew by 14 MRI facilities
under HMCA management - 10 in New York and 4 in Florida, 12 of them equipped with STAND-UP&reg; MRIs. Those 14 centers completed
68,000 MRI scans in 2012. Together the two groups of centers completed 113,000 scans in 2012, a strong indicator of the patient
throughput run rate that is expected for HMCA going forward.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the third quarter, the Company installed
a new FONAR UPRIGHT&reg;, Weight-Bearing, Multi-Position&trade; MRI in Texarkana, Texas. The Company has now installed 157 UPRIGHT&reg;
Multi-Position&trade; MRI scanners and they have performed approximately 2.75 million UPRIGHT&reg; MRI scans worldwide.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 1, 2013, the Company repaid a portion
of the Class A Stockholders capital contribution in the amount of $1.2 million. The Company&rsquo;s subsidiary, HMCA, now owns
an 85% interest in Imperial Management Services.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Management Commentary</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dr. Raymond Damadian, M.D., president and chairman
of Fonar Corporation, said: &ldquo;The acquisition of HDM is expected to be a significant source of profitability. With this acquisition
we doubled the assets of the Company and tripled our stockholder&rsquo;s equity. Funds were obtained for the $40 million acquisition
from a commercial bank at a low interest rate.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;There are more reasons why this acquisition
makes a lot of sense,&rdquo; continued Dr. Damadian. By combining the resources of HMCA and HDM, we will enjoy the benefits of
economies of scale, shared administrative and technical expertise and capabilities, and joint marketing strategies. HMCA&rsquo;s
11 STAND-UP&reg; MRIs together with HDM&rsquo;s 12 form a network of 23 STAND-UP&reg; MRIs, the largest in the world.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;Of course, we&rsquo;re not finished
growing,&rdquo; said Dr. Damadian. &ldquo;We will continue to pursue additional management contracts, primarily in New York and
Florida.&rdquo;</P>


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    <TD STYLE="vertical-align: bottom; width: 27%; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Page 4 of 9</FONT></TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;This past April 6<SUP>th</SUP> we held
&lsquo;Symposium 2013&rsquo; in New York City. The symposium was called &lsquo;The Cranio-Cervical Syndrome (CCS): The Vulnerability
of the Human Neck and Its Impact on Cerebrospinal Fluid (CSF) Flow&rsquo;,&rdquo; said Dr. Damadian. &ldquo;There is a pandemic
dimension of injuries of the neck and head, including 1.2 million whiplash injuries each year in the United States, and the principal
purpose of Symposium 2013 was to bring the existence of this Cranio-Cervical Syndrome to the medical community and general populace.
We will publish, before year-end, a monograph containing the complete presentation of the eight faculty who presented at the conference.
We will also place their presentations online.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;Our understanding of the Cranio-Cervical
Syndrome (CCS) and the vulnerability of the human neck and its impact on cerebrospinal fluid (CSF) flow began with our research
and findings on multiple sclerosis. On September 20, 2011, I and co-author, FONAR scientist David Chu, PhD., published a paper
titled &ldquo;The Possible Role of Cranio-Cervical Trauma and Abnormal CSF Hydrodynamics in the Genesis of Multiple Sclerosis,&quot;
in the journal <I>Physiological Chemistry and Physics and Medical NMR</I> (Sept. 20, 2011, 41: 1-17), found at http://www.fonar.com/.
With this new understanding of the role that cervical trauma plays in the etiology of disease, it is imperative to certify that
the sustained neck or head injuries of professional athletes such as NFL football players, whiplash patients and others with severe
neck trauma, have not resulted in any obstructions of CSF flow, which would eventually lead to the symptomatology we have reported
as related to the Cranio-Cervical Syndrome,&rdquo; said Dr. Damadian.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;The Company is fortunate to have as
its flagship product the FONAR UPRIGHT&reg; Multi-Position&trade; MRI,&rdquo; continued Dr. Damadian. &ldquo;This is truly a unique
technology producing exquisite images in all positions of the body. It not only yields a whole new treasure of new medical applications
in such calamitous medical categories as multiple sclerosis, and other dementia, but it also possesses the strong potential to
provide fresh new insights into the debilitating chronic consequences of sports injuries, the current epidemic of automobile whiplash
injuries, all spine injuries, and more diseases yet to be unearthed.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>About FONAR</U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">FONAR (NASDAQ:FONR),
Melville, NY, <U>The Inventor of MR Scanning&trade;</U>, was incorporated in 1978, and is the first, oldest and most experienced
MRI company in the industry. FONAR introduced the world&rsquo;s first commercial MRI in 1980, and went public in 1981. Since its
inception, nearly 300 recumbent-OPEN MRIs and 157 UPRIGHT&reg; Multi-Position&trade; MRI scanners have been installed worldwide.
FONAR&rsquo;s stellar product is the UPRIGHT&reg; MRI (also known as the Stand-Up&reg; MRI), the only whole-body MRI that performs
Position&trade; imaging (<I>p</I>MRI&trade;) 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&reg; MRI often sees the patient&rsquo;s
problem that other scanners cannot because they are lie-down only. The patient-friendly UPRIGHT&reg; MRI has a near-zero claustrophobic
rejection rate by patients. As a FONAR customer states, &ldquo;If the patient is claustrophobic in this scanner, they&rsquo;ll
be claustrophobic in my parking lot.&rdquo; Approximately 85% of patients are scanned sitting while they watch a 42&rdquo; flat
screen TV. FONAR is headquartered on Long Island, New York.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">#</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><FONT STYLE="font-size: 10pt">UPRIGHT&reg;
and STAND-UP&reg; are registered trademarks and The Inventor of MR Scanning&trade;, Full Range of Motion&trade;, Multi-Position&trade;,
Upright Radiology&trade;, The Proof is in the Picture&trade;, True Flow&trade;, pMRI&trade;, Spondylography&trade;, Dynamic&trade;,
Spondylometry&trade;, CSP&trade;, and Landscape&trade;, are trademarks of FONAR Corporation.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><I>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.</I></FONT></P>



<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0.9pt 0 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace"></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0.9pt 0 0"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0.9pt 0 0; text-align: center"></P>


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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0.9pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace"><B>FONAR
CORPORATION AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">CONDENSED
CONSOLIDATED BALANCE SHEETS</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(000's
OMITTED, except shares and per share data)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(UNAUDITED)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">ASSETS</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Current Assets:</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">March
    31, 2013</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">June
30, </FONT><BR><FONT STYLE="font: 10pt Courier New, Courier, Monospace"> 2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 66%; text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Cash
    and cash equivalents</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">9,243</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">12,032</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Accounts
    receivable &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">4,993</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,095</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Accounts
    receivable - related party</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">30</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp; &nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Medical
    receivables &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">4,513</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp; &nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Management
    and other fees receivable &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">14,820</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,782</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Management
    and other fees receivable &ndash; related medical practices &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,396</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,311</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    and estimated earnings in excess of billings on uncompleted contracts</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">488</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,129</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Inventories</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,284</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,195</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Current
    portion of notes receivable &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">118</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">116</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Prepaid
    expenses and other current assets</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">837</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">206</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); text-align: right">
    <TD STYLE="text-align: left; height: 30"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Current Assets</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">39,722</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">25,866</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Property
    and equipment &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">17,713</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,173</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Notes
    receivable</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">192</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">276</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Goodwill</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,667</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp; &nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Other
    intangible assets &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">12,796</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,835</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Other
    assets</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,191</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">465</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -12; padding-left: 17.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Assets</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">73,281</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">33,615</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
</TABLE>



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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0.9pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace"><B>FONAR
CORPORATION AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">CONDENSED
CONSOLIDATED BALANCE SHEETS</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(000's
OMITTED, except shares and per share data)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin-top: 0; text-align: center; margin-bottom: 0; margin-left: 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(UNAUDITED)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">LIABILITIES
AND STOCKHOLDERS' EQUITY</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">March 31,</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">June 30,</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace"><U>Current
    Liabilities:</U></FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2013</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 66%; text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Current
    portion of long-term debt and capital leases</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,517</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,854</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Accounts
    payable</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,639</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,077</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Other
    current liabilities</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">8,680</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">7,693</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Unearned
    revenue on service contracts</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,681</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,475</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 17.4pt; text-indent: -16.4; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Unearned
    revenue on service contracts - related party</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">28</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;
                                                                                                              &nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Customer
    advances</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">4,763</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,881</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Income
    tax payable</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;
                                                                                                                                              &nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">100</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Current Liabilities</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">24,308</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">21,080</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Long-Term
    Liabilities:</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Accounts
    payable, non current</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;
                                                                                                              &nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">47</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Due
    to related medical practices</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">231</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">229</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 17.4pt; text-indent: -16.4; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Long-term
    debt and capital leases, less current portion</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">13,404</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">777</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Other
    liabilities</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">362</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">401</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Long-Term Liabilities</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">13,997</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,454</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Liabilities</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">38,305</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">22,534</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
</TABLE>


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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace"><B>FONAR
CORPORATION AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">CONDENSED
CONSOLIDATED BALANCE SHEETS</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(000's
OMITTED, except shares and per share data)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(UNAUDITED)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">LIABILITIES
AND STOCKHOLDERS' EQUITY (Continued)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; vertical-align: middle"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">LIABILITIES
    AND STOCKHOLDERS' EQUITY&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">March
                                                                               31, 2013&nbsp;</FONT></P></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">June
    30, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">STOCKHOLDERS'
    EQUITY:</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Class
    A non-voting preferred stock $.0001 par value; 453,000 shares authorized at March 31, 2013 and June 30, 2012, 313,438 issued
    and outstanding at March 31, 2013 and June 30, 2012</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Preferred
    stock $.001 par value; 567,000 shares authorized at March 31, 2013 and June 30, 2012, issued and outstanding &ndash; none</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10; width: 66%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Common
    Stock $.0001 par value; 8,500,000 shares authorized at March 31, 2013 and June 30, 2012, 5,977,905 and 5,912,905 issued at
    March 31, 2013 and June 30, 2012, respectively; 5,966,262 and 5,901,262 outstanding at March 31, 2013 and June 30, 2012, respectively</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Class
    B Common Stock (10 votes per share) $ .0001 par value; 227,000 shares authorized at March 31, 2013 and June 30, 2012, 158
    issued and outstanding at March 31, 2013 and June 30, 2012</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Class
    C Common Stock (25 votes per share) $.0001 par value; 567,000 shares authorized at March 31, 2013 and June 30, 2012, 382,513
    issued and outstanding at March 31, 2013 and June 30, 2012</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Paid-in
    capital in excess of par value</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">174,478</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">174,084</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Accumulated
    other comprehensive loss</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(15</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(20</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Accumulated
    deficit</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(164,457</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(168,334</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Notes
    receivable from employee stockholders</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(57</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(71</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Treasury
    stock, at cost - 11,643 shares of common stock at March 31, 2013 and June 30, 2012</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(675</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(675</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Non
    controlling interests</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">25,701</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">6,096</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Stockholders' Equity</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">34,976</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">11,081</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20; text-indent: -10"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Liabilities and Stockholders' Equity</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">73,281</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">33,615</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
</TABLE>


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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace"><B>FONAR
CORPORATION AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(000's
OMITTED, except shares and per share data)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<TR STYLE="text-align: center; vertical-align: bottom">
    <TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="7"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">FOR THE THREE MONTHS ENDED MARCH 31,</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">REVENUES</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2013</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 66%; text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Product
    sales &ndash; net</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">416</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,309</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Service
    and repair fees &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,867</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,008</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Service
    and repair fees &ndash; related parties - net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">27</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">27</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Patient
    revenue &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">965</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Management
    and other fees &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,402</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,601</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Management
    and other fees &ndash; related medical practices &ndash; net</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,965</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,571</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 0.25in; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Revenues &ndash; Net</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">11,642</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">9,516</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">COSTS
    AND EXPENSES</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to product sales</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">498</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">962</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to service and repair fees</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">819</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">891</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to service and repair fees &ndash; related parties</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">8</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">8</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to patient revenue</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">791</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to management and other fees</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,606</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,390</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to management and other fees &ndash; related medical practices</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">900</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">953</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Research
    and development</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">381</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">315</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Selling,
    general and administrative</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,774</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,224</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Provision
    for bad debts</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">235</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">170</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 0.25in; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Costs and Expenses</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">10,012</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">7,913</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Income
    From Operations</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,630</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,603</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Interest
    Expense</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(79</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(103</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Investment
    Income</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">55</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">53</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Income
Before Provision for Income Taxes</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,606</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,553</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Provision
    for Income Taxes</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">25</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,581</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,553</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income - Non Controlling Interests</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">505</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">261</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income - Controlling Interests</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,076</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,292</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income Available to Common Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,005</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,206</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income Available to Class A Non-Voting Preferred Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">53</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">64</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income Available to Class C Common Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">18</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">22</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Basic
    Net Income Per Common Share Available to Common Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.17</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.21</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Diluted
    Net Income Per Common Share Available to Common Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.17</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.20</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Basic
    and Diluted Income Per Share - Common C</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.05</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.06</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Weighted
    Average Basic Shares Outstanding</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,937,096</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,836,229</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Weighted
    Average Diluted Shares Outstanding</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">6,064,600</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,963,733</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Weighted
    Average Basic Shares Outstanding &ndash; Class C Common</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">382,513</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">382,513</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Weighted
    Average Diluted Shares Outstanding &ndash; Class C Common</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">382,513</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">382,513</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

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8 of 9</FONT></P>

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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace"><B>FONAR
CORPORATION AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(000's
OMITTED, except shares and per share data)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 21.1pt 0 0; text-align: center"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Courier New, Courier, Monospace">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">FOR
    THE NINE MONTHS ENDED MARCH 31,</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2013</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">REVENUES</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 66%; text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Product
    sales &ndash; net</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,536</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="width: 5%"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">4,699</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Service
    and repair fees &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">8,341</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">8,720</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Service
    and repair fees &ndash; related parties - net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">83</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">83</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Patient
    revenue &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">965</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Management
    and other fees &ndash; net</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">12,946</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">10,238</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Management
    and other fees &ndash; related medical practices &ndash; net</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,895</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">4,712</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Revenues &ndash; Net</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">30,766</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">28,452</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">COSTS
    AND EXPENSES</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to product sales</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,457</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,608</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to service and repair fees</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,579</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,572</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to service and repair fees &ndash; related parties</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">26</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">24</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to patient revenue</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">791</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to management and other fees</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">7,013</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">6,462</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Costs
    related to management and other fees &ndash; related medical practices</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,568</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">2,673</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Research
    and development</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,031</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">938</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Selling,
    general and administrative</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">8,338</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">6,261</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Provision
    for bad debts</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">735</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">655</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 18.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Total
    Costs and Expenses</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">25,538</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">23,193</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Income
    From Operations</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,228</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,259</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Interest
    Expense</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(258</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(333</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Investment
    Income</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">174</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">178</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Other
    (Expense) Income</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">(13</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">55</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Income
    Before Provision for Income Taxes</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,131</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,159</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Provision
    for Income Taxes</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">152</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">21</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">4,979</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,138</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income - Non Controlling Interests</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">1,103</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">796</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income - Controlling Interests</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,876</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">4,342</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income Available to Common Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">3,621</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">4,051</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income Available to Class A Non-voting Preferred Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">190</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">217</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Net
    Income Available to Class C Common Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">65</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">74</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Basic
    Net Income Per Common Share Available to Common Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.61</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.71</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Diluted
    Net Income Per Common Share Available to Common Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.60</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.69</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Basic
    and Diluted Income Per Share-Common C</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.17</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">0.19</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Weighted
    Average Basic Shares Outstanding</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,921,540</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,744,506</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Weighted
    Average Diluted Shares Outstanding</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">6,049,044</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">5,872,010</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 9pt; text-align: left; padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Weighted
    Average Basic Shares Outstanding &ndash; Class C Common</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">382,513</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">382,513</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9.6pt; padding-left: 9.6pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">Weighted
    Average Diluted Shares Outstanding &ndash; Class C Common</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">382,513</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">382,513</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font: 10pt Courier New, Courier, Monospace">&nbsp;</FONT></TD></TR>
</TABLE>


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